When a student or parent sets out to accumulate a loan and/or financing a college study there are a many distinct sources they can go to in order to accumulate the funding necessary. However, there are two distinct categories of loans which are either federal loans or inexpressive loans.
As for federal funding for college, in many cases it is much easier to get the financing if you fit the criteria set in place. By far, one of the most beloved federal student loans is the Stafford loan. There are two types of Stafford loans which are the federal house educational loan and the William D. Ford federal direct loan. The process of obtaining a Stafford loan is through the student filling out a federal student aid application, then once popular ,favorite they will sign a promissory note on the loan.
College pupil Loans - Federal and private Loans
The only real dissimilarity between the two types of Stafford loans is where the actual funding is arrival from. For a direct loan, the funds are arrival directly from the federal government as for a Ffel loan, the funding comes from either a bank, credit union or another participating lender in the program.
There are also a couple more that should be mentioned in this article and those are the Parent Plus and Perkins loans. First, the Parent Plus loan is designed for parents in need of assistance for paying their child's college fees. This loan basically will fill in any gaps that the parent needs in order to cover all the college expenses fully.
The Perkins loan is basically a student loan which can be applied for at the college or university financial aid office which regularly has a very low interest rat, but has a maximum loan estimate of around ,000 each year for students. They are federal fund and can be added to other types of funding. There are late fees and fees for skipping payments on the Perkins loan as well.
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