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What Is a Guaranteed Student Loan?

Not everyone is fortunate enough to have the means to go to college, some can't even go to school, but that shouldn't hinder a person to pursue his/her dreams. There are other ways to for a student to get aid in their studies, and one of the safest and surefire options you can acquire is to apply for a Student Loan. So what is a guaranteed Student Loan?

A student loan is a loan that is mostly applied for by students. This kind of loan is supported or backed up by the federal government. This loan enables the student to have a financial aid in tuition fees, books, and living expenses. With a lower interest rates and the repayment schedule may differ from other loans while the student is still in education, but it may also vary in other different countries. There are many factors for a student to be considered a particular student loan; it might depend on their income, and the parent's income, and other financial considerations.

There are five kinds of a student loan: the first is "Federal Stafford Loans" this particular mortgage focuses more on long-term loans for students who are financially weak and cannot manage to pay for tuition fees for higher education. It also has more flexibility options in terms of payments, which can be issued from a bank, credit union or any government offices.

The second is "federal Student Loans", this is the most basic type of student loan and also flexible, it also offers good assistance through competitive interest rates. The interest rates of such loan is regulated by the congress and hence much lower to other type of private or personal loans. The best part of federal student loan is that the payment period can extend up to the time when the student finishes his/her education and achieve the desired degree of graduation or course completion.

Third, is "Federal plus Loans", this loan is based on credit history and the cost of attendance. The interest rate for this type of loan is low but the repayment usually starts within 60 to 90 days after the full disbursement of the loan or after the time period after the student graduates. This type of loan is accessible to parents whose children are pursuing their graduate/undergraduate degree from college as full or half time students.

The fourth one is known as the "Federal Perkins Loan"; this loan has very low interest rates and doesn't start to accumulate till nine months after a student drops below half time enrollment/joining or graduates. It is for students with high financial need and is awarded to deserving students; just ask any financial aid advisor to know whether you can qualify for this particular loan. Just remember that if you fail or delayed any payment then it can damage your credit.

Lastly, is the "Private Student Loan", it is a fact that not all student loans can be accommodated by the federal student financial aid. Thus private student loans are seen as alternate options in many cases. This loan also proposes the same benefits and flexibility as of federal student loans, but with its own terms and conditions about interest rates or repayment choices. Since private sector banks are the ones in charge of this loan, and they do have their own conditions, so better understand the terms and policies before applying for private student loans.

As you can see there are a lot of available help you can take aid with if you really want to pursue your dreams and make them into a reality.

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