Include These Programs in Your Loan Search
College funding draws from resources that don’t require repayment, like scholarships and grants, but these are not the only sources of financial aid for university students. Student loans close the affordability gap left after gift-aid is exhausted, providing low-interest options for students and parents paying for higher education.
In the past, the Federal Government dispensed low-interest fixed-rate loans with the help of private banks and credit unions. Stafford Loan amounts were determined by government agencies, then students receiving the federally-backed aid would enter into loan agreements with private lenders.
To cut out the middleman, and save money associated with administering the loans, the Department of Education now acts as its own lender for Subsidized Federal Direct Student Loans. Lending limits hover around five-thousand dollars annually, per student, and rates are fixed, so there are no surprises during repaymentpetitive student https://getbadcreditloan.com/payday-loans-ct/ loan interest rates are hard to beat in the private sector, but for students needing to extend their borrowing capacity, private alternative financing is available.
Government repayment options facilitate success, giving graduates several alternatives for making good on student debt. Graduated repayment plans that start with small payments, and then catch-up with larger payments over time, allow payments to grow alongside graduates’ earning power. Read More