How does a student loan work?

Question

I want to apply for a loan but not sure how to start and how it works. Can someone explain to me the different type of loans?

Answer 1

First step is to apply for the FAFSA at www.fafsa.ed.gov and list your school code on it. Your school will then send you an award letter stating what grants and loans you qualify for and additional information on applying for the loan. The school should give you a list of preferred lenders to borrow from but you are allowed to choose any lender you want that offers Stafford loans. Stafford loans are the most common and fall into 2 categories subsidized and unsubsidized the difference is the first the government pays the interest while you are in school the second you are responsible for all interest with both there are no payments until 6 months after you graduate. The Perkins is not as common and may be phasing out soon but it is similar to the subsidized stafford with repayment starting 9 months later. There is also a PLUS loan for parents if you are a dependent student or for graduate students which starts repayment immediately.

Answer 2

go to www.FAFSA.ed.gov.. fill it out and it will tell ur school how much u are eligible for grants and loans.. there is a perkins loan (which almost nobody qualifies for),, stafford subsidized (govt pays the interest in school and in deferment) and unsub. stafford.. they don't pay the interest. There are several private loans but they are based on credit, and require a co signer. FAFSA is self expanatory... U can request a pin # and do it online or fill out papers and send it in.Loans will not be due until u are out of school 6 months..

Answer 3

Here is an article http://sivu.at/2c3 with some information on loan options and the best plans.