College is a time of growing and learning. You learn more than just book matter through. You learn about your finances in a hurry as well. Did you know the department of education has your back on a few personal loan options? Let’s take a look at some of these personal loans that are available from the government.
Federal Perkins Loans
The Perkins loan is a campus-based federal government student loan. The nice feature on this loan is that it is available for undergraduate and graduate students alike. Undergraduate students can borrow up to $5,500 each year, while graduates students can snag up to $8,000 per year.
Perkins loans have rates of around 5%. To help even further, you have a nine-month grace period from the time of your graduation before you have to start repaying this loan. This is one of the longer grace periods for any personal loan. This is quite handy in these times of high unemployment rates!
Federal Stafford Loans
Stafford loans are quite possibly the most common of personal loans to students. These loans can be subsidized or unsubsidized.
A subsidized loan means that the government is taking responsibility for the interest while you are snoozing through class. A subsidized loan does not accrue interest while you are still in school.
Unsubsidized loans are completely the opposite. The biggest item here is that the government is often your lender.
To sweeten the subsidized loan deal you usually have a six-month grace period from graduation before repayment of these loans start. This time allows you to don that suit and become a working stiff.
PLUS loans are a bit trickier than the previous personal loan types. PLUS loans will require you to have some established good credit. The advantage to a plus loan is that you can apply to borrow the full amount of attendance.
It is never this simple though. The full amount of attendance comes with a bit of a hitch. Let’s say you need $12,000. You apply for a plus loan. The plus loan knows that you have a grant for $2,000. The plus loan will let you take a grand total of $10,000 to cover the difference. Keep in mind that the cost of attendance will not cover your Solo cup fund.
Direct Consolidation Loans
Direct consolidation loans combine several federal government student loans into one simple personal loan. This helps to simplify your personal loan repayments. You might find a lower rate comes in consolidating all your student personal loans as well. To put the icing on the cake, repayment terms are more flexible with a consolidation loan as well
Take note that if you are still attending school you might not be eligible for consolidating your personal loans.
College should be a time of fun and personal growth. The last thing you want to dread is how those personal loans are mounting up against you. Do some research now and save some trouble later. Beside, we all know you would rather be playing pong with red Solo cups.
Photo via trazomfreak