Types of Student Loans

Loans are not only for parents of other people who already have jobs. It is also available for the students. And this are the types of loans that they can apply.
Subsidized Federal Stafford Loan – this is the type of loan with a long term and need based and with low interest rate.

Unsubsidized Stafford Loan – this is a type of loan that non need based, it is also long term and with low interest rate. This is the type of loan that best for students who don’t qualify to the other type of financial aid.

Additional Unsubsidized Stafford Loan – These loans are reserved for borrowers that are classified as an independent student.

Federal plus Loans – this are available only for the parents whose children are attending college. They are also awarded base on the credit history and cost of attendance. It has a low interest but the repayment is usually begins within 60-90 days after the full disbursement of the loan of after the student will graduates.

Federal Perkins Loans – this was awarded on an extreme financial needs, they also has a low interest rates.  They also have an unlimited total fund available to be disbursed. This type of loans also is reported to a credit bureau. So it means that if you are late on payments or even default on your loan it will damage your credit.