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Student Loans

MSN.com advises students to make sure that their loan payments will not be more than 10% of their expected income after college graduation.
There are several different types of student loan programs to help pay for college expenses. Learn more about each of these loans:
 
Federal Student Loans
If you will be paying for part or all of your college expenses, chances are you will need to apply for student loans. You can apply for Federal loans by filling out the FAFSA (Free Application for Financial Aid). The money for all types of Federal loans comes from either the U.S. Department of Education (these are called “direct loans”) or from local lenders like banks (these are known as “Federal Family Education Loans” or FFEL). Each school chooses which program they want to participate in, which can affect the terms of the loan, how much you will have to pay in interest, or how likely it is that you will be approved. Learn more.
 
Federal loan programs for students include:
  • Perkins Loans
    These loans are for students who have a serious financial need. Perkins loans have the best interest rate of any of the Federal loan programs and no additional fees.
  • Subsidized Stafford Loans (“Direct Loans”)
    These Federal loans are for undergraduate or graduate students who have a financial need. The Federal government pays for the interest of the loan while you are still in school, and for six months after they graduate. You can borrow $3,500 to $8,500 each year (depending on their year in school).
  • Unsubsidized Stafford Loans
    These Federal loans are NOT based on financial need. They are given to any student who qualifies. You can borrow up to $7000 if you’re an undergraduate student or up to $12,000 if you’re a graduate student.
  • Federal Consolidation Loans
    These loans combine other eligible loans together so that the borrower has only one payment to worry about.
Other Student Loan Programs
  • College-Sponsored Loans
    There are some schools that have their own student loan programs. They may offer fairly low interest rates. Students should look through their college's financial aid information or contact the financial aid office.
  • Private Loans
    These should be a student’s very last option to pay for college. Banks, credit unions, and other lenders offer private loans to pay for college expenses, but these loans usually have a higher interest rate than the Federal loans listed above. 
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i will like to learn more about federal student loans and in this being my last year of high school
Posted by Beehive Reader on Sep. 29, 2011 5:57 pm.
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Definitely take a look through the different options above, clicking the links will provide you with more information. Also, take a look at the different ways to make college affordable and don't forget to apply for FAFSA: http://www.thebeehive.org/school/going-college/pay-college/financial-assistance-programs. Hope this helps - Alexis
Posted by Alexis Cala, Beehive Producer on Oct. 11, 2011 2:03 pm.
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