Undergraduate Student Loans For College 101

Welcome to our short tutorial, Undergraduate Student Loans for College 101. We want to provide you with answers to the basic questions regarding undergraduate student loans for college. It is important to note that financial aid for college is more than just student loans. If you are new to college financial aid we suggest you start learning about all of your college financing options before taking a look into undergraduate student loans.

What are undergraduate student loans?
Undergraduate student loans for college are student loans which help to fund your undergraduate college degree. Undergraduate student loans can be used for an Associates (2 years) or a Bachelors (4 years) college degree. When you see the term “undergraduate student loans”, this simply refers to any type of student loan (private or federal) which is used to fund your undergraduate college education.

What are undergraduate student loan limits?
Undergraduate student loan limits will vary depending on which type of undergraduate student loan you are considering. Federal undergraduate student loan (which should ALWAYS be considered before undergraduate private student loans) limits are based on things such as financial need, dependency status, grade level and your status as a student. For more on federal student loans for college please click here. Undergraduate student loan limits for private student loans are the total cost of education minus other financial aid received. For more on private student loans for college please click here.

What are federal undergraduate student loans?
Federal undergraduate student loans for college are student loans which are provided by the federal government. When it comes to student loans, these are the first type of student loans you should apply for since they offer the best rates and terms. To begin applying for federal undergraduate student loans for college, you will need to file a FAFSA.

What are private undergraduate student loans?
Private undergraduate student loans (sometimes referred to as alternative student loans) are loans which are provided by banks and other private financial institutions. Private student loans for college are awarded based on your credit, not your financial need (as federal student loans for college are). Since private student loans can not typically match the rates, terms, and repayment options offered by federal student loans, private student loans should not be considered until all other financial aid options have been exhausted.

Are there undergraduate student loans with no cosigner?
Federal undergraduate student loans for college will not require a cosigner. Private undergraduate student loans for college will most likely require a cosigner unless you have impeccable credit / credit history. Even if you can secure a private undergraduate student loan without the help of a cosigner, if you can find a cosigner with credit / credit history superior to your own, you could be eligible for better rates on the private student loan.