Looking for a Student Loan for College

As you head off for college, you may realize that working and college just do not mix all the time. And you need help paying for college. Many people heading off to college are in need of some financial assistance. There are a few ways to help the college students with his finances. One way is with government students loans fro college. The main student loan for college used today is called the Stafford Loan.

How much you can borrow on a student loan for college depends on whether you are a dependent or independent student. An independent student is defined as “at least 24 years old, married, a graduate or professional student, a veteran, an orphan, a ward of the court, or someone with legal dependents other than a spouse.” A dependent student is defined as “any student who doesn’t meet the definition of an independent student is dependent. The parents’ income is included in calculations of need.”

There are three different types of student loans for college available they include:
Federal Direct Stafford/Ford Loans:
The student will fill out an application with the school that they wish to attend. The school will then determine if the student is in need of financial assistance. With this type of student loan for college pays the interest in certain situations, like if the student is in school, or during the time they are in school if on a part-time enrollment.

Federal Direct Unsubsidized Stafford/Ford Loans:
This type of student loan for college is for any student with no concern of financial need. But, the student will have to pay all interests on this loan.

Federal Direct Consolidation Loans:
This student loan for college will combine all federal loans into one monthly payment.

There are different ways in which to repay students loans for college.
With Direct Subsidized Loans or Direct Unsubsidized Loans there are four different ways you can repay these loans. For Direct PLUS Loans you may not use the last option below. Here is a list of options you have available to repay your student loans for college.

Repayment Plan (Standard)
This plan has monthly payments that can not be changed; the lowest payment would be $50 per month. It also is set for a certain amount of time up to 10 years. Since this plan is usually paid in a shorter amount of time than other direct student loans you will usually pay less total interest.

Repayment Plan (Extended)
According to how much money is borrowed this loan can be extended to as long as 12 to 30 years. You will still pay the same monthly payment without it changing but they can be less than what you pay with the above plan but not less than $50 per month. The interest rates will probably be higher since the loan is for a longer period of time.

Repayment Plan (Graduated)
This type of student loan for college will allow you to start out with low monthly payments that will increase gradually every two years. The repayment period is the same as the plan above depending on the amount of money you borrow. Again the interest will probably be higher since the loan is for a longer period of time.

Repayment Plan (Income Contingent)
This plan is based on the amount of your student loan for college and your monthly income. If your income decreases the monthly loan payment will also decrease, the same with increases, if your income increases so will your monthly loan payments. You will have up to 25 years to pay the loan, any money left owed after that time will be released. You may still have to pay taxes on the money that was released.

Another type of government student loan for college is the Perkins Loan. This loan is given to students with exceptional financial need. It is similar to the Stafford Loan as the school acts as the lender using funds from the federal government.

The amount of this student loan for college is usually $4,000 per year for undergraduate students and $6,000 per year for graduate students. There are no fees involved with this loan but the interest rate is 5% with a 10 year repayment plan.