| When a student or parent sets out to obtain a loan | | | | has a maximum loan amount of around $4,000 each |
| and/or financing a college education there are a many | | | | year for students. They are federal fund and can be |
| different sources they can go to in order to acquire | | | | added to other types of funding. There are late fees |
| the funding necessary. However, there are two | | | | and fees for skipping payments on the Perkins loan |
| different categories of loans which are either federal | | | | as well. |
| loans or private loans. | | | | These loans and more can all be inquired upon at |
| As for federal funding for college, in many cases it is | | | | your selected college or university. |
| much easier to get the financing if you fit the criteria | | | | Credit history may not be as necessary if it is |
| set in place. By far, one of the most popular federal | | | | necessary at all in obtaining these types of funding |
| student loans is the Stafford loan. There are two | | | | options. As opposed to federal student loan funding, |
| types of Stafford loans which are the federal family | | | | there are many private lenders willing to provide |
| educational loan and the William D. Ford federal direct | | | | assistance for college funding as well. However, if |
| loan. The process of obtaining a Stafford loan is | | | | you so decide to take the private lender route for |
| through the student filling out a federal student aid | | | | financing a student loan, it is important to remember |
| application, then once approved they will sign a | | | | that most will need a bit of a credit history from the |
| promissory note on the loan. | | | | potential debtor and will most likely require a |
| The only real difference between the two types of | | | | co-signer on the loan if the student with not much |
| Stafford loans is where the actual funding is coming | | | | credit history at all is attempting to obtain the |
| from. For a direct loan, the funds are coming directly | | | | financing. |
| from the federal government as for a FFEL loan, the | | | | Federal funding for college students who need the |
| funding comes from either a bank, credit union or | | | | financing, as well as parents is very available for |
| another participating lender in the program. | | | | anyone who has a need for such funding and it |
| There are also a couple more that should be | | | | would be a good idea to look at all the options |
| mentioned in this article and those are the Parent | | | | available in order to compare interest rates, fees, and |
| PLUS and Perkins loans. First, the Parent PLUS loan is | | | | more as these student loans will be around for a |
| designed for parents in need of assistance for paying | | | | while after college as some loans will begin the |
| their child's college fees. This loan basically will fill in | | | | payment schedule immediately during college like the |
| any gaps that the parent needs in order to cover all | | | | Parent PLUS. Other repayment schedules will begin |
| the college expenses fully. | | | | after 6 months for Stafford loans and 9 months for |
| The Perkins loan is basically a student loan which can | | | | Perkins. So it would be a good idea to get all this |
| be applied for at the college or university financial aid | | | | information first hand before making any quick |
| office which usually has a very low interest rat, but | | | | decisions about your college student loans. |