Different types of student loans

Are you struggling to pay your tuition fees? Not to worry there are different types of student loans designed specifically for all the students out there.

Different types of student loans
Different types of student loans

Private student loans

The student’s loans that are offered are linked to the federal. This type of loan is a non-federal loan. Meaning that the loan can be taken from anywhere else either bank, credit union.

Before you take out a private loan you need to make sure that these types of loans are paid every month.  The payments are income-based meaning you need to be employed.

That is not always the case with many students. This m means that if you have chosen a private e loan you will need a cosigner.

Subsidized loans

These are the most recommended type of loans for the student. a subsidized loan means that you do not have to start paying immediately.

Proof that you are in school taxpayers that are the ones who will pay for the interest of such a loan.

as a  student, you will only start paying back the loan six months after graduation. this type of loan also has requirements that you will need to meet as a student, seeing that not every student can qualify for the loan.

parent plus  student loans

this type of loan can be taken by the student but the name that will appear on the papers is not the student name but the parent’s name.

this will mean that the parent is the one responsible for paying back the loan. Also, the interest that is charged for the loan is paid by the parent. This loan is registered with a federal student loan.

There are also set requirements for this type of loan. Since it will under the parent’s name, the lender will have to do a credit check on the parent. The reason for the credit check is to see if they can pay back the loan.

Unsubsidized student loan

Just like the subsidized one this type of loan is also recommended for students. unlike the subsidized one where the student does not have to pay the interest here the student will have to the interest charged by the lender.

An added advantage is that you will only start paying it back six months after you are done with college.