Apply for a Student Loan Today
Student loans are financial aid payments for a student’s education. The financial aid received from a student loan is intended only for educational costs, including tuition, room and board, computers and textbooks. These loans can be acquired through federal or private lenders.
Federally Funded Student Loans
These loans, most commonly received in the form of Stafford loans, are given by the US Department of Education. In order to qualify, a student must fill out a free application for student aid (FAFSA) form. While in school, students may defer payments as well as receive a 6-month grace period after graduation before repayment begins.
Privately Funded Student Loans
Unlike federally funded loans, private student loans (or alternative education loans) are given by banks or financial companies, such as Sallie Mae. Private student loans are generally accompanied by higher interest rates than federally funded loans. Private loans do not require the student to fill out a FAFSA form. These loans do allow deferment of payments during school, but do not typically offer a grace period after graduation.
Before applying for a student loan, consider the following:
- No payment now = more payment later
Be wary of loans that guarantee no payment until after graduation. Be sure to examine the interest rates and periodic payments due after graduation, to prevent being blind-sided by overwhelming fees and payments you can’t afford.
- Consider a cosigner
If you haven’t already established credit, you may want a parent or guardian to cosign on your loan. Even if you’ve established credit, some loans award outstanding credit history with significantly lower interest rates.