About Cheap Student Loans
Student loans are a form of financial aid given to students by the federal government, banks, and other financial institutions. There are many different kinds of college student loans, and all of them are tailored to students in that they have lower interest rates and longer repayment periods than other conventional loans. Student loans are available for undergraduates, graduate students, and parents who want to help pay for their child's undergraduate education, and can be obtained through both the federal government and private lenders. One of the most common and sought after types of financial aid is a student loan.
A private student loan covers tuition, the cost of books, study materials, and other living expenses. Good student loans will provide a significant amount of aid at an extremely low Annual Percentage Rate (APR) that makes the repayment process very easy with a minimal mark-up.
Benefits of Cheap Student Loans
Cheap Student Loans are available from both the federal government and major private lenders. For example, Sallie Mae and Wells Fargo offer some of the very best cheap college loans. These programs are designed for motivated students who are pursuing a bachelor's degree or higher, and who cannot cover the total cost of college after receiving other forms of financial aid.
Cheap Student Loans are an attractive option for students who have no part-time job and who want to focus on their studies with no financial distractions. As such, these loans are very helpful as a form of financial aid, especially so for the relatively more expensive degree programs. Keep in mind that cheap college loans help pay for tuition, fees, books, study materials, and living expenses.
Features of Cheap Student Loans
There are essentially two main types of cheap student loans: direct-to-consumer loans and school channel loans. Most students prefer direct-to-consumer loans to school Channel Loans for their increased flexibility in financial aid management. Direct-to-consumer loans offer special packages and a deferment of repayment upon completion of your studies, and the loan funds are distributed directly to the student to be used as the student sees fit. School channel loans, on the other hand, are sent right to the student's college or university to cover tuition. The major requirements in any Cheap Student Loans program are that you need to have a valid SSN, a fairly good credit history, and that your college or university is recognized by the lender you wish to borrow from.
Some cheap college loans require a co-signer, which usually is the applicant's parent or legal guardian. Co-signers should have a very good credit history, as their credit will impact the interest rate on the loan. These co-signers can also be removed after a specific amount of successful repayments. Along with having a minimal interest rate, the providers of such loans also offer flexible repayment options. Before applying for cheap student loans, you should research and compare your options thoroughly.
Q:Do I have to fill out a FAFSA form to apply for the cheapest student loans?
A:Yes, if you wish to apply for the cheapest student loans, you will need to fill out a FAFSA form online. This application is used by the federal government to determine a student's eligibility for federal financial aid. The different aid programs include loans, scholarships, grants, and work-study programs. That application is available free of cost at fafsa.ed.gov.
Q:How can I get cheap college loans?
A:Cheap college loans are offered in various forms such as federal, state, or private loans. The cheapest form of college funding, apart from 'free-money' awards such as grants and scholarships, is considered to be federal loans, since they have the lowest interest rates. To apply for federal loans, one must submit the Free Application for Federal Student Aid (FAFSA). However, to qualify for some federal loans, an applicant must demonstrate financial need. All students are eligibile for unsubsidized Stafford Loans, but other types of federal cheap college loans require applicants to show financial need. If you cannot prove financial need and the federal loan acquired does not fulfill your need, you can apply to various private loan sources such as private organizations, individuals, or banks. Private funding allows you to borrow as much as you desire but at an interest rate of the lender's choice. Hence, it is recommended that you check the terms and conditions of private loans thoroughly before signing the deal.
Q:How can I get affordable student loans?
A:Your first choice should be to look for federal loans, as these have plenty of features that are sometimes better than those offered by private lenders. However, if you can't obtain federal loans, then you should get quotes from as many lenders as possible. Moreover, you should ask for annual percentage rates (with all fees included) so that you can make better comparisons.
Q:What can I do if I don't get cheap loans for students from federal sources?
A:Although federal loans are the most recommend form of loans, there are many students who do not qualify for them. These students can explore the option of private loans, as they provide assistance to thousands of students. Students who have good credit history or have a co-signer can get loans at lower interest rates. It is also advisable to compare loan options offered by various companies before making a choice.
Q:What would be the best student loans?
A:The federal government, with its Perkins and Stafford options, is considered to be the best student loans. These loans are easy to apply for, as students only need to fill out the FAFSA. This form is available online and can be submitted at fafsa.ed.gov. Both Perkins and Stafford loans offer fixed interest rates with more protection for the borrower. Compared to private loans, students are recommended to exhaust their federal options first.