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Dept Of Education Student Loans – Loans Offered

September 2, 2011

Dept Of Education Student Loans

The Dept of Education student loans are offered to students as a way to make the insanely pricey option of college a lot more affordable. The Department Of Education has three different categories that one can choose from when it comes to student loans which are: Direct Loans, Stafford Loans as well as PLUS Loans which consist of both loans that parents can take out their children as well as their Graduate PLUS loans that are at the graduate and professional level. Dept Of Education student loans can be applied by anyone at no cost through the FAFSA application form which stands for Free Aplication for Federal Student Aid.

Dept Of Education Student Loans

 

Dept Of Education Student Loans – Loans Overview

DIRECT LOANS

  1. Subsidized – These Dept of Education student loans are rewarded to the most financially needy. To qualify for this option you must prove different specifications such as low income or unemployed etc. This one is interest free while in school as well as during its 6 month grace period. Interest rates are often as low as 3 percent which is a fixed interest rate meaning that it will never change.
  2. Unsubsidized – These loans are the opposite of subsidized as they are offered to anyone regardless of their financial need. This one is much easier to qualify for but makes one pay interest while in school, but not during the 6 month repayment period. Interest payments are usually a bit higher with unsubsidized Dept of Education student loans but are fixed like subsidized.
  3. Direct PLUS Loans - Like it was said before, these Dept of Education student loans are for parents who are taking out loans for their dependable child, as well as for those who are going into grad school or professional students as the borrowing limits are much higher. These loans both have low fixed interest rates and provide benefits like deferrment options, you don’t have to have a cosigner to qualify and you monthly payments are considered tax deductable.
  4. Direct Consolidation – This last option allows you to combine all of your federal student loans into one lump payment instead of paying on multiple different payments each month. By doing this you can get a lower montly payment as well as lower interest payments.

STAFFORD

  1. Stafford loans are offered to both undergraduate and graduate students and is the most used loan program around for federal loans. These as well come with low interest payments and can be used for anything related to school like tuition, books, transportation and more. These Dept Of Education student loans offer a fixed interest rate as low as 3.4 percent, and up to 20,5000 dollars per year in borrowing funds depending on where you are at in you schooling.

Dept Of Education Student Loans – What Should You Do Now?

This is what there is to offer as far as the Dept Of Education student loans go, but it is highly suggested that you exaust your free financial aid resources first, like scholarships and grants which can be inquired about through the college you are going to attend as well as on the internet. After you have exausted your resources when it comes to free financial aid, then it is suggested that you start looking into the Dept of Education student loans and private loans.

 

 

Department Of Education Student Loans Major Overview

August 27, 2011

Department of Education Student Loans

There are 4 different types of Department of Education student loans, that many are now using to remedy the high prices of schooling. They are known as Direct Loans and are famous for being lended at every low interest rates and a lot of them do not require that you have a cosigner. The best part about these loans is that for the most part, your credit score doesn’t affect your acceptance when it comes to getting the grant money you need. This is just a background, below will be more information on, how to qualify, the different Department of Education student loans programs that are avialable along with the major details that encomapss this information.

Department Of Education Student Loans

Department of Education Studetn Loans – Overview

First off before we get into the different types of Department of Education student loans there are, you will need to first fill out a FAFSA which is a Free Application for Federal Student Aid. This program will take into account any help you are currently recieving like scholarships, grants, help from you parents, if any of these, and whatever the difference is that is left, when it comes to having enough to pay for school will be the amount of money you will be eligible for.

Qualifying for any one of the Department of Education student loans that are avaialable require you to meet certain criteria, those being that you can prove the following:

  • US citizenship or permanent resident
  • Provide a valid Social Security Card
  • Present either a GED or Highschool Diploma, or your two year degree if you are transferring from community college
  • Prove that you the finances are needed
  • Be maintaining what they call a “good standing” academically, legally and financially.
  • Lastly to qualify for Department of Education student loans is that you have to agree to maintain a certain grade point average while you are in your schooling

If you can prove the above, you will be deemed eligible for one of the Department of Education student loans, which the types of loans are discussed in the next section.

Department of Education Student Loans – Differnt Types

There are 4 differnt Department of Education student loans options that you can consider when searching for the right one for you. These loan options are offered through three different grant programs, those being The Stafford Loan which currently has the lowest interest rate, around 4 percent, The Perkins Loan which has a higher interest rate, but is a lot easier to qualify, and The PLUS Loan which is for parents to apply for when helping their child obtain eligibility for loan money. Below are the different categories in which Department of Education student loans are offered.

  1. Direct Subsidized Loan (DSL) which is interest free during the time that you enter college through the the completion of your degree. These Department of Education student loans are given according to financial need, and is given a grace period of what is usually six months after college where you don’t have to pay, leaving you time to find a job.
  2. Direct Unsubsidized loan (DUL) is the next type that is offered by the Department of Education student loans and unlike DSL loans, they are not based on financial need, meaning pretty much anyone can qualify. They also charge interest while you are in college.
  3. Direct Plus Loan (DPL) which explained above is the one where parents take out a loan under there name for their children.
  4. Direct Consolidation Loan (DCL) is the last type of option that the they offer and this is for those who are looking to combine multiple loan programs into one payment.

Department Of Education Student Loans – Conclusion

This is a main overview of the Department of Edcucation student loans program, one that offers billions of dollars per year for students to go to school and attain their degree. They are an excellent organization to go through that is funded by the government so you know they will be legitimate. Hopefully this information on the Department of Education student loans was what you were looking for, and all the best of your application process!