Student loans and grants
Joanie, a very intelligent and academically driven woman had dreams, Big dreams. To become a professional and work in a large company making buckets of money. To do that she wanted to study in a top 10 university and add to her resume the golden weight of a reputed degree. However money comes with money. She didnt have the funds to finance a premier college. A lower rated education meant a lower level chance of getting a job.
She saw her dreams turn to dust.
Unfortunately, this is the situation with many students aspiring to go abroad and to get admission in top colleges. Fortunately, help comes in the form of student loans and student grants. Issued by the government, students now have the opportunity to avail of these loans that carry lower interest rates than most other loans. In addition, grants that are given to students dont even have to be paid back.
The BOON
Top education always comes with a price. Not everyone can dig deep into their pockets for a decent quality education. Flexibility and convenient paying schemes is what is offered with student loans. A student need never stop studying just because there isnt enough funds. Today, countless organizations and institutes provide opportunities for students to study abroad and assist them with financial help.
Types of Loans
To achieve a valued education, finance is the one topic of discussion. The presence of student loans being made available has lessened the degree of difficulty to these groups seeking to finance their education at quality colleges.
In the United States alone, there exist various types of loans. These are categorized into federal and private.
Federal (that which belongs to an entity of the Government ) loans are loans guaranteed by the federal government. No credit is issued to these types of loans and thus a credit check is not required. Private loans on the other hand are granted by various private institutions.
Federal Loans are further classified into:
Federal Perkins Loan A loan generally granted by the college or university financial aid office. A need based loan granted to those students who qualify the need for financial help to overseas education. With restricted amount of funds, a selection basis is generally awarded to students.
Federal Stafford Loans An education loan issued by a participating lender. Students have a choice of two types subsidized - where the federal government pays the interest and unsubsidized the borrower pays the interest.
Federal Plus Loans Loans available to parents for their children attending undergraduate college. With credit history taken into account, the interest is quite low on this type of loan, and generally the repayment is after the student graduates.
Who qualifies for a student loan or grant
Every institution bases their loans on their own criteria. However a student with a reduced interest rate and deferred payment schedule can be eligible to obtain a loan.
Every student need to have a clean bill of assets and values and should profess the need for such a loan.
It is always helpful to have a high academic record for more chances of securing a loan.
The student should also be able to express keen interest in studying abroad and why they think this education will help them and what they aim to achieve.
Remember, as a student BUDGETING is critical. You dont want to be left high and dry if you do not estimate the cost of the entire education. Ask the university, ask colleagues, ask past students. It is always better to be prepared in advance about the expense it is going to cost you and how much of the loan or grant is actually going to cover.
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