|
|
Four Advantages of Federal Student Loans
|
|
Posted On :
Jan-17-2012
| seen (429) times |
Article Word Count :
472
|
|
A free overview of federal loans offered by Milana Grade. She prepared four main advantages of loans by the federal government.
|
|
There are plenty of opportunities for youth today. Young people do realize that education plays an important role in people's lives and play more and more attention to finding opportunities for financing their education.
One of the main college funding strategies that do work today is to apply for federal student loans.
Federal student loans are loans provided by the government for students who need money for financing their education and additional costs (living expenses, literature and other things). It's important to notice that student loans from the federal government can be considered as cheap option in the term of interest rates. In comparison with non-federal (private) student loans offered by banks and other financial institutions the federal loans are cheaper.
The second advantage of federal student loans is that they are designed for needy students (except Parent PLUS loans). Dealing with need-based criteria does mean that a potential borrower doesn't have to have high income level. In other words if you have financial need and low-income you can still qualify for the loan you want. In fact, several types of loans (Perkins and Subsidized Stafford) are specially designed for student who demonstrates huge financial need. Because the government really cares about citizens and is focused on improving various important spheres including education it offers federal student aid options that can be received regardless of your financial situation. And also it's easier to apply and qualify for federal loans rather than for private aid options.
The third advantage of federal aid is that a borrower can qualify regardless of bad credit score he or she might have. If a student has unpaid debts in the form of credits and as a result bad or little credit history it's not an obstacle and can't be a problem. A borrower can still apply for federal loans (except Parent PLUS loans) successfully and receive needed funding.
It's important to understand that the government plays an important social function – provides opportunities for students for an education. And in this case the theme of an income level, credit history (bad or no) doesn't really matter. Summing up, a student applying for federal education loans could have low income and bad credit score and it won't be a problem.
The forth big advantage of loans offered through Federal Direct Loan Program is that a student doesn't have to have a cosigner. In comparison with loans by private lenders where it's required to have high income and good credit score and if someone doesn't meet these two requirements – he or she highly needs a cosigner.
Summing up all advantages of federal loans it's necessary remember that college funding process is complicated and a potential borrower should spend some time analyzing the information and defining what he (she) really wants.
|
|
|
|
Article Source :
http://www.articleseen.com/Article_Four Advantages of Federal Student Loans_134690.aspx
|
|
Author Resource :
In addition, discover more tips about federal student loans. Visit trusted federal student financial aid online resources and check out their advanced guide on federal student loans.
|
|
Keywords :
federal student loans,
Category :
Finance
:
Loans
|
|
|
|
|
|
