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Student Education Loan - How to get a student education loan

Financial Dictionary: Accounting, Business & International FinancePersonal Finance - Student Loans

In this day and age of increased tuition, almost every student leaves college with some sort of student education loan. College is expensive, so getting a loan can help pay for tuition, books, room and board, and everything else that goes along with the experience. Finding the right student education loan is an important part of the experience, and it is something that students need to think long and hard about. How does one get a student education loan? You should start by looking at government options, while also considering some of the private lenders.

Starting with the Federal Application for Student Financial Aid (FASFA)
Ask any student who has been through college and they will quickly be able to identify the acronym FASFA. This is how you apply for aid from the government, and it gives you access to need-based aid. When you fill out this form, you will have a chance to earn grants, but the more important concern has to do with your student education loan. The FASFA will ask for financial information, which will then be used to determine if you are eligible for subsidized federal loans.

The different federal loan options
When looking toward a federal student education loan, know that there are many different options. Different students will qualify for different options, depending upon how much money your parents happen to make. The following loan types are available for students as they enter college for the first time:

  • Subsidized Stafford loan
  • Unsubsidized Stafford loan
  • Perkins Loan

The majority of students will qualify for a student education loan plan that includes some combination of these different loan types. The nice thing about subsidized loans is that the government will cover the interest while you are in college, and they will often cover the costs as you are seeking employment once you get out of college. If you ever enter into a stage where you are unable to make payments for a while, interest will not accrue on these loans. This can save a significant amount of money over the long run. For that reason, it is important for students to get as much money as possible in subsidized loans from the government.

Considering private loan sources
Many students will have the entire cost of tuition covered by a federal student education loan, but those are tricky in one sense. They are paid out directly to universities, so you don’t get the money in hand to pay for necessary expenses beyond tuition and fees. This is where a private student education loan can come in handy.

Students can get a private loan to cover just about any expense while in college. From rent payments to books to food expenses, private student loans are there to help young adults get through unscathed. If you have costs that extend beyond tuition, then you would be well advised to research the various lenders. Loan comparison sites exist that allow prospective borrowers to see information on rates, loan terms, and any special considerations that might be available. From there, the loan application process is similar to any other private loan, with the caveat being that student education loans are easier to get.

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