Are Their Student Loans For Undergraduates?

Normally, students tend to rely on federal studentPerkins Loans are awarded to all graduate and
loans to finance their education as they provide aundergraduate students who are in exceptional
variety of deferment options and extendedfinancial needs. This is considered as a campus based
repayment terms. The most beneficial student loansloan program in which a school acts as the lender and
include Stafford and Perkins loans with themakes use of limited funds they get from the federal
opportunity for the undergraduates to get thesegovernment. Perkins Loans are subsidized loans as
loans as well.the interest rate is paid by the federal government
Federal Student Loans for Undergraduateswhile you are in school or having 9 months grace
Stafford Loanperiod. With Perkins loans, you have to pay only 5%
These loans have two variations:interest rates with a 10 years repayment period. The
Federal Direct Student Loan Programs are the onesamount you can receive under Perkins Loans is
which are administered by direct lending school anddecided by the Financial Aid Office which is $4,000
the US government makes them available directly toper year for undergraduate students. Cumulative
the students and their parents.limits for undergraduate loans are $20,000 and
Federal Family Education Loan Program are the ones$40,000 for undergraduate and graduates combined.
provided by the private lenders like banks, creditPell Grants
unions etc. Such loans are guaranteed against default.Pell Grants award $4,310 per year to undergraduate
Effective from July 1, 2007, the Stafford loans havestudents who have not earned their university
allowed the dependent undergraduates that they candegree yet. Eligibility for undergraduate student loans
borrow up to $3,500 for their freshman year. Theywith Pell grants is based upon the Expected Family
can borrow up to $4500 in their sophomore year.Contribution which is calculated on the form of
However, there are some cumulative limits ofFAFSA.
$23,000 for undergraduate education. They also offerPrivate Student Loans for Undergraduates
a combined limit of $65,500 for both undergraduateThere are lots of private lenders which offer loans
and graduate.for undergraduate students to help them complete
Effective from July, 2008, the interest rates ontheir studies. Access group is the best choice for
subsidized Stafford loans have been reducedundergraduate students who are seeking loans to
according to The College Cost Reduction and Accesspay for schools. The Comprehensive Access Loan is
Act of 2007. These interest rates are applicable onlybasically designed for the undergraduate students
for undergraduate students and only for subsidizedalthough it works for other students as well and
Stafford loans.allows you to complete your program or degree at
Interest rates on the subsidized federal loans foryour own pace. If you remain enrolled at least part
graduate student will remain same at 6.8%. But intime, you have a repayment period of 10 years. With
case of undergraduate students, there are manythese loans, you get a nine month grace period after
fluctuations expected in the interest rates ofyou complete your graduation or stop attending
Stafford loans.school.
Repayment in case of Stafford loan begins after sixTo get approved for such loans you need:
months when a student graduates or drops below- To earn a minimum credit bureau score.
the half time enrolment. The total repayment period- To have three years of US Established credit
is 10 years. However, you can have alternatehistory in your name. Also you must include in it 4
repayment terms on consolidation the loans.non-student loan trades at least one opened for 36
Perkins Loansmonths.