How to Qualify For a Low Interest Student Loan
By: Michael Considine
There are quite a few low interest student loans available, either through the federal government or private sources. Your search for a private student loan may be very difficult if your credit is bad or non existent because most these loans typically require a credit check. There are a lot of federal student loan programs that have no requirement of having collateral, some don't even make you get a credit check.
To save money, try to find a lower interest rate which will result in lower payments and fewer payments. Interest begins being charged starting at the date of the first loan disbursement. If the student does not pay the interest as it accrues, it will be added to the principal balance of the loan at time of repayment.
While it is sometimes possible to get a private loan with a very low interest rate, your best bet is with federal student loans. Federal education loans are available in either the Direct Loan or federally-guaranteed student loan programs. The Federal education loan programs offer lower interest rates and more flexible repayment plans than most consumer loans, making them an attractive way to finance your education.
Federal student financing (Stafford, Direct and Perkins loans)can be combined with outside and or school awarded scholarships, like Pell grants (which do not have to be repaid),PLUS loans (made to students' parents),and other financing.
Start the process by filing the Free Application for Federal Student Aid (FAFSA), and submitting the application starting January 1 each year. Once your form is reviewed by the government, they will send you a letter called the student aid report. This report will tell you what programs you qualify for and how much money.
When you apply for financial aid, your information will also be sent to your school of choice. They will decide what you are qualified for.
Just because there is a paper jungle to work though doesn't mean you should give up on student loans. Filing a FAFSA is also an application for a grant, which is a bonus because it does not have to be repaid.
The FAFSA process is unquestionably the best way to determine what your financial aid options are.
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