Different Types Of Student Loans And Their Benefits
What Is The Federal Direct Loan Program (FDLP)?
FDLP or the Federal Direct loan program as it is called, funds all the student loans in the US. Some of the major categories or types under the program includes the Stafford, Parent Plus, Grad Plus loans. Federal loans are known to have the lowest rate of interests much below the prevailing market rates or rates offered by any private lenders. Repayment terms are yet another vital factor which the students need to look forward to. Under the Federal loans a very flexible term of repayment term is offered to the students.
What Are The Provisions Under The Federal Family Education Loan Program (FFELP)?
FFELP loans are the class of loans which are available to the students through the private lenders These are backed by the Federal government, hence they still offer better term and conditions as compared to the other private lenders. They are different from the Direct loans or the FDLP loans in the sense that they have different interest rates, repayment terms and other benefits associated with them. These loans are not the first preference of the students however, if they fail to qualify or get approved for the FDLP program they generally get to their FFEPL program.
Where Can Students Find The Information Related To Their Loans?
One can get the loan information from the Student loan data system which is available online. All the information related to any loan whether under direct loans or the FFELP , the information can be had from the website of NSLDS. Knowing the status of the loans can help students plan their future course of action in relation to the repayments; whether to go for a lump sum payment, increase the payments owing to employment or ask for the increase in the deferment period owing to unemployment post graduation.
What Are The Fundamentals Of The Student Loans?
Student loans are looked upon as investments. Loans that fund education prepare students for the future, help them attain higher education and qualify for better jobs and greater future.
Student loans are the debts which have to be repaid over a period of time also referred to as the tenure of the loan. However, in case of trouble repaying the loans students are advised to take up loan loan consolidation programs.
These loans are provided by the Federal as well as the private lenders. Federal loans are the most preferred for the interest rates and the flexibility in the repayment terms that they offer. Students can get the loan approvals irrespective of the credit history, income or collaterals.
What Is FAFSA?
Free Application for Federal Student Aid or FAFSA as the name suggests is the first step towards acquiring a loan. One needs to submit the completed form and ensure that all the entries made are correct and the information are true with regards to the applicant.