| Now that you came to the conclusion a higher | | | | student and the parent. Because these loans are |
| education is definitely in your future, you need to | | | | available to both the parent and the student at low |
| start looking into precisely how your planning to pay | | | | interest rates, they allow the family to contribute to |
| for it. While looking for student loans you are likely to | | | | the burden of paying for the child's education. |
| discover both government loans in addition to private | | | | The next group we'll mention are Private student |
| programs. Each of those two groups, have a number | | | | loans, and the terms of this type of loan are |
| of different types of loans to select from. It will | | | | dependent on the lender. The problem with most of |
| require some time, however, it will likely be time | | | | these loans, is they are given based on the students |
| wisely spent if you learn the differences concerning | | | | credit score, which most high school age students will |
| all of the types of programs being offered in each | | | | not have much of a credit history. The signature |
| groups. | | | | student loan is available to those students with good |
| The very first type we'll discuss is the Federal loan | | | | credit or those with less than a good credit score |
| programs being offered. Let's start with the Stafford | | | | may still qualify with a qualified cosigner. These loans |
| loan. To qualify for this one your FAFSA application | | | | should be the loans of last resort, and a student and |
| must verify that you have a financial need. This is a | | | | their family should take advantage of any of the |
| Federal subsidized loan, but instead of borrowing the | | | | Federal loans or grants that they qualify for, before |
| money directly from the government, you borrow | | | | they apply for a Private loan. |
| from a tradition lender. With this program you are | | | | If you are thinking about going to a tech or trades |
| giving time after you graduate to get a job, before | | | | school, you could qualify for the Career Training Loan |
| you actually need to start paying the money back. | | | | that is available from Sallie Mae. While the loan is |
| The Perkins loan is another option that might be | | | | given based on credit history, it is also available for |
| available to you.. To qualify for this loan the student | | | | on line courses which makes it worth looking into. |
| most likely will come from a low income family and | | | | The money from this loan could be used for |
| show a real financial need. What makes this loan one | | | | educational expenses other than tuition. Sallie Mae |
| of the best to qualify for, is the fact that it is a low | | | | offers flexibly payment plans with no early payment |
| interest loan. Like the first option we talked about | | | | penalties. |
| this loan also has a grace period before you need to | | | | The most important thing to remember is that you |
| start making payments. | | | | should start early and research all the different loan |
| The next type of loan we'll cover is the Plus loan, | | | | options that might be available to you and your |
| and it is available not only to the student, but to the | | | | family. The cost of a higher education means that |
| parent of the student also. The families income will | | | | most students graduate with substantial debt, so it is |
| determine how much money is available to the | | | | important to get loans with the best available terms. |