Guaranteed Money With These 8 Types of Student Loans

Holy Cow, I had no idea there were so many different types of student loans available to the high school graduate. This guide will reveal the 8 different types of student loans you can chose from, as well as the positives/negatives of each and the little secrets we found out that will help you decide which types of student loans are right for your situation.


The 8 Types of Student Loans:

*Federal Stafford Loan (2 types: subsidized-unsubsidized)
*Federal PLUS Loan (Parent Loan for Undergraduate Students)
*Federal Perkins Loans
*Bank Loans
*State Loans
*Additional Unsubsidized Stafford Loan
*Other types of loans
military
work place
college
** College Board Extra Credit Loan


Before you run out and start looking for different types of student loans understand that you are not eligible for any student loans until you have first completed and submitted your application to FAFSA. Once they send you your Student Aid Report (SAR) then you can start looking for the best student loans available for you and your child. Let's dig into the different types of student loans.


* Federal Stafford Loan - Subsidized: the most popular and cost effective student loans available. These are government guaranteed loans for both undergraduate and graduate students. It's really hard to beat these interest rates.


***Student Loans Secrets***


The College Cost Reduction and Access Act of 2007 determined the following fixed interest rates on Stafford loans. These rates are for subsidized loans to undergraduate students.


6.0% for the 2008-09 school year
5.6% for the 2009-10 school year
4.5% for the 2010-11 school year
3.4% for the 2011-12 school year
returns back to 6.8% for the 2012-13 school year.


My wife was eligible for this loan, however it was not enough to cover expenses so she had to pursue additional sources. My son was not eligible for a subsidized loan, hterefore he had to get an unsubsidized loan. And, we will have to reapply with FAFSA in January for both of them.


* Federal Stafford Loan - Unsubsidized: this can be a long term low interest rate loan. Right now the rate is 6.8%. Those students who don't qualify for the subsidized loan almost always can get this loan. In some cases you can postpone interest payments, but usually the interest on the loan is the borrower's responsibility. We have chosen to make the payments monthly ($7.92) to keep the overall cost of the loan at a minimum.


Unsubsidized Stafford Loan - This loan is long-term, non-need-based, with a low-interest rate. This type of student loans is best for students who don't qualify for other types of financial a id, or who still need more money in addition to other forms of financial aid. Almost all household incomes qualify, and "unsubsidized" means that the student must begin making payments after the grace period. There are several cases where students have negotiated the removal of interest payments until after graduation.epaying until after grace period.