The Best Student Loans?

Written by yanxiao September 04, 2008 11:53

The best student loans around are really not that hard to find. In fact, with so much competition for the student loan market, there are even some pretty good private student loan deals floating around. Even so, the best student loans available continue to be the loan programs offered by the federal government. They are created with students (rather than profits) in mind, have generous application and repayment terms and have undergone a lot of public scrutiny.

That is also the reason that they continue to be the most popular student loans around.

So what are the options?

Federal Stafford Loans -

These are a very common type of loan from the Department of Education that can be given to either graduate or undergraduate students who are US Citizens. You must be attending a university of college and attending more than half-time. This particular loan is probably the most popular available.

Federal Perkins Loans -

This is the main loan for students who are in most financial need. They do not require a parent to cosign and no interest accrues during the time that the student is at college. The interest rate is also very reasonable compared to most other student loan options, meaning that it will be cheaper and hopefully take less time to repay.

Federal Parent PLUS Loans -

If your parents are willing to take out a loan for your education, then this is going to be the best option for them in most cases. The loan itself is made to the parents, rather than to the student directly.

Federal Graduate PLUS Loans -

This is a newer type of loan which allows professional and graduate students to apply for the PLUS loan. Again, the loan itself goes to the parents for the education of their child. These four types of loan are by far the most widely utilized student loan options. While there are many private student loans available that you should also investigate, the federal options will remain among the best student loans available.

By far, the hardest part of completing the student loan consolidation process is getting started. With so much information and a diverse number of program options, the endeavor can be a bit overwhelming. This article will help acquaint you with one of the most popular Federal student loan options. The Direct Student Loan Consolidation.

There are 3 basic categories of Direct consolidation loans..

1) Direct PLUS Consolidation Loan 2) Direct Subsidized Consolidation Loan 3) Direct Unsubsidized Consolidation Loan

Direct student loan consolidation offers a fixed interest rate that is fixed for the life of the loan. There are 4 types of Direct student loan consolidation repayment plans as follows...

1) The Standard Plan This option gives you up to 10 years to repay your loan

2) The Extended Plan This option allows up to 30 years for repayment. This plan can offer much lower monthly payments. However, you will pay more in interest payments as a result of the extended life of the loan.

3) The Income Contingent Plan The repayment life of this loan is typically 25 years. The monthly payments are determined based on your gross annual income. They also take into account the size of your family and how much you owe.

4) The Graduated Plan This plan typically has a loan life of 12-15 years. The term graduated in this case means the amount of your monthly payments will increase every 2 years.

Contact your Lender or the Department Of Education about applying for a Direct Student Consolidation Loan today. They can suggest the best course of action for your financial needs. Student loan consolidation could very well be the option you need to regain control of your life.

German : Die beste studentische Darlehen? Spanish : La mejor de los préstamos estudiantiles? French : Le meilleur de prêts aux étudiants? Japanese : 最高の学生ローンですか？ Russian : Лучшие студенческие кредиты?