If you are like the average college student, you will need a little financial assistance to complete your college degree. When it comes to taking out a school loan, there are a few different options to choose from. For many of us, the options can be confusing and overwhelming to choose from. It's important to make a smart choice. What is the absolute best student loan option?
The first choice is to choose between government and private loans. Government loans by far are the best choice. Government loans offer low interest rates with repayment schedules that span over ten to twenty five years.
If you have extreme financial need, you might even be able to qualify for a Federal Pell Grant or a Federal Perkins Loan. Since you do have to prove you have financial need to qualify for these loan options, most people don't qualify. The absolute best student loan available is the Federal Stafford loan.
The reason the Federal Stafford loan is the best student loan option is because it is the most affordable loan that is the most universally available to students.
Subsidized loans are only issued to those who can show they have financial need. If this is you, the subsidized Stafford loan is the best option since it gives a grace period of six months after you graduate to start making money. The loan doesn't require repayment and it doesn't start accruing any interest until those six months have passed. This gives you time to figure out your finances.
The main perk to a subsidized loan is that it allows for a grace period of six months after you graduate from school. What this means is that you don't have to begin repayment on the loan for the first six months after school and you also won't accrue any interest on the loans until the grace period is over. Not everyone can qualify for a subsidized Stafford loan since you have to show financial need.
If you don't qualify for the subsidized Stafford loan, you will more than likely be able to qualify for the unsubsidized Stafford loan. Once you stop going to school, the loan will go into repayment. The up side is that the interest rate on these loans is still usually pretty low.
While there are a lot of school loan options out there, before you consider a private lender or even paying for school with a credit card, consider the absolute best student loan option, the Federal Stafford Loan.
The first choice is to choose between government and private loans. Government loans by far are the best choice. Government loans offer low interest rates with repayment schedules that span over ten to twenty five years.
If you have extreme financial need, you might even be able to qualify for a Federal Pell Grant or a Federal Perkins Loan. Since you do have to prove you have financial need to qualify for these loan options, most people don't qualify. The absolute best student loan available is the Federal Stafford loan.
The reason the Federal Stafford loan is the best student loan option is because it is the most affordable loan that is the most universally available to students.
Subsidized loans are only issued to those who can show they have financial need. If this is you, the subsidized Stafford loan is the best option since it gives a grace period of six months after you graduate to start making money. The loan doesn't require repayment and it doesn't start accruing any interest until those six months have passed. This gives you time to figure out your finances.
The main perk to a subsidized loan is that it allows for a grace period of six months after you graduate from school. What this means is that you don't have to begin repayment on the loan for the first six months after school and you also won't accrue any interest on the loans until the grace period is over. Not everyone can qualify for a subsidized Stafford loan since you have to show financial need.
If you don't qualify for the subsidized Stafford loan, you will more than likely be able to qualify for the unsubsidized Stafford loan. Once you stop going to school, the loan will go into repayment. The up side is that the interest rate on these loans is still usually pretty low.
While there are a lot of school loan options out there, before you consider a private lender or even paying for school with a credit card, consider the absolute best student loan option, the Federal Stafford Loan.
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