If you are looking for an easy, sensible, and low interest loan for your education, then the US Department of Education loans are the right one for you. The US Department of Education loans are managed by the Federal Family Education Loan Program (FFELP). The direct loans do not need an outside lender anymore and the students can pay back their loans directly to the government. There are three main options when considering a US Department of Education loan; grants in the form of cash, student loans, and work-study programs. Among the three, the student loan is the only one that has to be repaid. Federal grants are based solely on financial need, while student loans and work-study programs are on a first-come-first-serve basis so applying early is really important.
Under work-study program, a number of work hours are specified as part of the financial aid package. These usually involve jobs working with either non-profit organizations or on campus jobs. The money earned will be used for college tuition.
The US Department of Education student loans include the Perkins Loan, the Stafford Loan, and the PLUS loan for parents. Perkins loans have low interest rate and payment for the loan can be up to 10 years. Other than that, the payment period for the loan would start six months after graduation. The problem though is that there are only a few available Perkins Loans to each school every year.
On the other hand, the Stafford Loan offers a higher interest rate than the Perkins loan, and it doesn't have any grace period after graduation; the upside is, there are more Stafford loans available and even students who don't have any pressing financial need can avail. The Stafford loan has a 30-year pay off period.
The last type of US Department of Education loans is the PLUS loans. These loans are offered to the parents of undergraduates. The payments immediately start after two months the money is received. The pay-off period for the loan is 10 years.
In order to be eligible for a US Department of Education loan, specific qualifications must be met. The qualifications are as follows: US citizenship (some non-citizens with social security number can also apply), financial need, a valid Social Security Number, and as a proof of eligibility for higher education a high school diploma, General Education Development (GED) certificate, or similar. Loan applicants must have a good financial, academic, and legal standing as well.
Need more student loan information? Visit us at http://www.allaboutloanconsolidation.com"> http://www.allaboutloanconsolidation.com
