| Not all student loans are suitable for any degree or | | | | 2. How much will the student loan cover? Some loans |
| professional course. The loans are designed to suit | | | | cover just the basic tuition fees. Therefore, other |
| the requirements of particular courses. They are | | | | expenses are to be paid by the student. For |
| either trust funds, scholarships, or government | | | | financially backward families, these become a |
| granted loans to aid a student in pursuing further | | | | difficulty. |
| education. In US, there are 3 basic types of loans | | | | 3. Aim for those loans that cover basic expenses like |
| given to students: | | | | college fees, tuition, book costs, boarding, and others. |
| 1. Federal Stafford Loans - They are further divided | | | | Many universities have the option for students to |
| into subsidized, unsubsidized, and additional | | | | work for few hours daily to earn the daily expense |
| unsubsidized Stafford loans. | | | | money. If the basic expenses are taken care of by |
| 2. Federal Perkins Loans | | | | the loan, then the student has not much burden. |
| 3. Federal Plus Loans | | | | 4. What is the loan repayment plan? This has to be |
| Selection for these student loans depends on several | | | | the most important consideration. While private |
| factors. You need to ask the information desk for | | | | moneylenders expect students to begin repayment |
| proper guidelines. Non acceptance from these facilities | | | | as soon as they finish the course, federal or |
| leaves door open for credits from private lenders, | | | | government student loans give time of approximately |
| albeit at higher interest rates and stricter return | | | | 6 months to start the repayment plan. |
| policies! Here are some guidelines to choose one. | | | | 5. What is the interest rate? Take loans that |
| 1. If the loans are in the form of scholarships or | | | | guarantee less amount of interest. Even better if you |
| awards, students need to apply for them | | | | get unsubsidized federal loan as the government |
| independently, sit for tests and interviews. | | | | pays interest on your behalf while you study. |