National Student Loan
Below is a listing and description of the types of national student loans that are available for you.
Federal Stafford Student Loans
A Stafford Student Loan is a loan that university and college students can get to supplement to your and your families ability to pay for the schooling. This also includes scholarships, work-study programs, and grants. The can be subsidized (subsidized loan means that the federal government will pay for the interest on the loan that accrues) or unsubsidized depending on your financial need.
Parent PLUS Student Loans
If you are a parent or student and enrolled in classes at least part time, the Parent PLUS Student Loan is available for you. The PLUS loans can accommodate a larger amount of the cost, and unlike the Stafford and Perkins, will have a higher interest rate and the commitment to pay is obligated by the parent and not the student. The Parent PLUS loan is also available for professional and graduate students.
Graduate PLUS Loans
This loan is a an unsubsidized loan that is guaranteed by the federal government that can be used to help with the cost of education. The main difference with this loan is that the graduate themselves takes out the loan on their own signature and credit rating. This loan shares the resemblance of the Stafford loan because the student can postpone payments while they are at least enrolled half time in a program.
Federal Perkins Loan
If you are a undergraduate or graduate student, the Perkins Loan is a federal student loan that is low interest. In this type of loan, the college itself will act as the lender and draws funds from the federal government. The Perkins loans are based on financial need and are on a first come, first serve basis.
Federal Student Loan Consolidation
Many students will take advantage at all the types of national student loans that are available to them. This also means that they could have a series of national student loans through the Stafford, Perkins, or PLUS program. The best thing to do after graduation is to consolidate your federal student loans into a single loan and reap the many benefits. You can get your monthly payment reduced (sometimes up to 53% less), a fixed interest rate, and a longer repayment term.
These are just a few options but probably the most important when looking at a national student loan.