Focus On Federal Student Loans

One of the most important pieces of advice when it comes to student loans for college, is simply to focus on federal student loans. Private student loans for college should not even enter your mind, until your federal student loan options have been depleted. Interest rates on federal student loans will not fluctuate and they are not based upon your credit rating. Federal student loans also offer the best borrower protections and repayment options. Lets breakdown the different types of federal student loans:

Perkins and Subsidized Stafford Loans:
Perkins and Subsidized Stafford Loans are the most affordable federal student loans, the main reason being is that the government pays all the interest on the loans while you’re in school. The interest rate for both Perkins and Subsidized Stafford Loans is fixed. If you qualify for Perkins and Subsidized Stafford Loans, these students loans are about as good as it gets.

Unsubsidized Stafford Loans: Second to Perkins and Subsidized Stafford Loans are Unsubsidized Stafford Loans, which are available to everyone despite income levels. The interest on Unsubsidized Stafford Loans will accrue while you are in school, however you will not have to begin making payments on these loans until six months after you graduate.

PLUS Loans: Lastly, are the federal PLUS Loans. PLUS Loans are federal student loans for either parents or graduate students. Federal PLUS Loans are going to come with a higher interest rate then any other federal student loans and they do require the borrower to pass a credit check, however in most cases they will still be a better deal then private student loans.