The Best Student Loans

The Best Student Loans

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by Trinity Nash

College is really expensive and most people can’t afford to pay for it on their own. In most cases, people need financial backing to complete their college degrees. Student loans are a good way to fund your educational goals. However, when it comes to applying for loans, it can be overwhelming to try to decide which loan is the best student loan. The choice you make will affect your future so it’s important to make a wise choice.

School loans are issued by private lenders as well as the government. Government loans are most definitely the best option to start with. Government loans don’t usually require a credit history check to qualify. Interest rates are usually much lower with government issued loans than with private lenders.

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The Federal Stafford loan is the most affordable loan available to students. There are two categories of the Stafford loan; there is the subsidized loan as well as the unsubsidized loan. Both loans tend to offer lower interest rates than you could receive from other types of loans.

There are two types of Federal Stafford loans you might qualify for. There are the subsidized and unsubsidized loans. There are just a few differences between the two.

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Subsidized loans are only issued to those who can show they have financial need. If this is you, the subsidized Stafford loan is the best option since it gives a grace period of six months after you graduate to start making money. The loan doesn’t require repayment and it doesn’t start accruing any interest until those six months have passed. This gives you time to figure out your finances.

The main perk to a subsidized loan is that it allows for a grace period of six months after you graduate from school. What this means is that you don’t have to begin repayment on the loan for the first six months after school and you also won’t accrue any interest on the loans until the grace period is over. Not everyone can qualify for a subsidized Stafford loan since you have to show financial need.

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When you complete school and begin repayment, pay attention to the loans you’ve received. If you have more than one Stafford loan, which most people do by the time they finish school, you might want to consider student loan consolidation. Consolidation allows you to lock in a low interest rate until repayment is complete.

In more than one way, the Federal Stafford loan is universally the absolute best student loan out there. So instead of accruing debt with private loans or expensive credit cards to pay for your schooling, get a Stafford loan instead.

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