These kinds of loan are not common in our daily life.But we can still find some .And these loans are liked by many students.This post will introduce you some of them.
Federal Stafford Loans: Stafford loans can be either subsidized or unsubsidized. They are administered as Federal Family Education Loans (FFELs) or Direct Loans. Schools can participate in both FFEL program and Direct Loan program. Subsidized loans are meant for students, who demonstrate the need for low interest loans, as determined by federal regulations. One does not have to pay interest provided one attends school at least 50 percent of the time. In addition to this, the student does not have to pay interest on the loans during the grace and deferment period. Stafford Direct loans are obtained from the Federal government, while Stafford FFELs are provided by private lenders participating in the FFELs program.
Federal Perkins Loans: Perkins loans are low interest loans offered to deserving students based on their financial situation. These loans are meant for students who are unable to pay interest on Stafford loans. The loans are provided by schools, participating in the Federal Perkins Loans program, in order to promote the cause of post secondary education.
Consolidation Loans: Subsidized/unsubsidized - FFEL and Direct Stafford Loans, Federal Perkins Loans, Federal Nursing Loans, Health Education Assistance Loans and SLS loans can be consolidated. Consolidation is the process of replacing many loans with a single loan that carries a low-fixed rate of interest as compared to the individual loans. The purpose of consolidation is to ensure that students, who are finding it difficult to manage interest payments on various loans, have the opportunity to pay off these loans with the help of a loan carrying a low-fixed rate of interest. Previously, consolidation loans were available to borrowers who were in school 50 percent of the time in order to help in the early discharge of their Stafford loans (FFEL or Direct Loan). However, this facility is no longer available. Private education loans cannot be consolidated using federal consolidation loans.
FFEL PLUS Consolidation Loans: Parents and guardians, interested in financing their children’s education, can obtain a FFEL PLUS Consolidation Loan without any credit checks. Direct PLUS Consolidation Loans, on the other hand, disqualify parents with adverse credit history.
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