Most students need student loan options to pay for college. The financial aid officers at your school are some of the best resources to ask for student loan information. In the meantime, here’s some information about the different kinds of student loans.
Through the Department of Education, the federal government provides funds to schools. The schools’ financial aid offices oversee the loans.
- Subsidized Stafford Loans are available based on financial need. The government pays the interest on the loan as long as you are in school. When you leave school, the loan begins to charge interest.
- Unsubsidized Stafford Loans are not based on financial need. You will be charged interest while you are a student, but you don’t have to make loan payments until six months after the you leave school.
- Perkins Loans are available only to people in great need. They have a 5 percent fixed interest rate. No interest is charged while you are a student. There are no hidden fees. Each school has a limited Perkins Loan fund. Talk to a financial aid officer to learn more.
- Parent PLUS Loans enable parents to borrow money for their kids’ schooling if student financial aid is not enough.
Private Education Loans
Private loans are another way to pay for college. They are offered by lenders like banks and credit unions. Getting a private loan may depend on your credit score. These loans tend to cost more than federal loans, and they typically have variable interest rates.
Do your homework
If you plan to take out student loans, do your research. Read the terms. Know what you’re getting into. Work with your college’s financial aid office. Higher education is very valuable. But you don’t want to start out your career with too much debt. Borrow smart!
It may be helpful to review your student loan options. Our financial wellness experts can help you. Call the GreenPath Student Loan Helpline to get started today.