Student Loans 101

By: | Published: June 15th, 2010

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It’s the middle of June and summer is underway for most students. However, before you check out for the summer, we remind you that your tuition bill will arrive very soon and it’s essential to prepare. Read on below for an introduction to the different types of student loans, how to shop for them and how to find the right student loan for you.

  • Federal Student Loans – Federal loans carry low, fixed interest rates. To save yourself the most money, it is critical to maximize your federal loans. Speak with your financial aid office to obtain this funding. The types of federal student loans are:
    • Stafford Loans – This common federal loan come in two variations:
      Subsidized – Need-based aid to which the accrual of interest is deferred until graduation.
      Unsubsidized - Available to almost any student regardless of need.
    • PLUS Loans – Loans for parents to borrow on behalf of their undergraduate children. PLUS Loans carry low interest rates and allow for the full cost of attendance less other financial aid.
    • GradPLUS Loans – Loans for professional or graduate students to borrow up to the full cost of their education.

Private Student Loans – These loans should be used to fill the unpaid gap left in your cost of attendance. Remember, your cost of attendance includes housing, tuition, food, travel, books, etc. Private loans can be used to cover any remaining gap left between your cost of attendance and the financial aid money and family contributions you’ll receive. Comparing private student loans is the best way to find the right loan for you. Use SimpleTuition to compare across variables that matter to you, such as: APR, monthly payments, total cost, etc.

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