Decided to take advantage of student financial aid loans? You've defiitey made the right choice student loans are the best investment you have ever made..
A student loan is simply the borrowed money you pay for academic necessities. These days, students can take advantage of federal and private loans. Federal student loans are federal - guaranteed loans Private Student Loans, on the other handare from the private sector such as the owners of big corporations and businesses. The former offer this type of program and service though the United Stated Department of Education while the latter offer this through their socio- civic institutions or foundation.
In order to remove the financial burden of students, these loans are made available. However, when a prospect student borrower has meager or no credit and is trying to borrow money from a private source, there will be instances that the lender will have to request someone with a better credit history to share the responsibility and accountability for the loan. This person is called a cosigner.
The following are the basis and facts on student loans without cosigner:
1. Student loans are mostly used for enrollement fees, books, travel and lodging
2. Private lenders may entail cosigners when the borrower has meager income or has modest credit history
3. The government offers and provides loans that do not necessitate a credit check
4. Perkins and Stafford loans do not necessitate credit checks
5. FAFSA (Free Application for Federal Student Aid) form must be finished in order to obtain government loans
So far, federal student loans are categorized into two. The federal Stafford loan, as aforementioned, does not require any credit check, and this is designed for any student regardless of their family's income. Student who wishes to access this type of federal loan can borrow up to $20, 500 each year, interest rate pegs at a fixed rate by as low as 4.5%. This type of loan will require payment only after graduation. Transactions on this type of loan can be made in the university's financial aid office.
On the other type, Federal Perkins loans are loans given in accordance to the student's financial necessities and requirement. Just like federal Stafford loan, this type of loan does not require credit check. Interest rate is fixed with 5% with repayment options that are very flexible.
Most of the time, companies that offer student loans offer different terms and conditions for student with cosigner and those who are without cosigner. Those who belong to the latter endure a hard time for having their loans approved because finance companies consider them risk costumes because they would eventually fail come debt repayment.
In this light, any student who would like to take student loan must be able to familiarize one's self and thoroughly understand the mechanics, agreements and its basic attributes that will be done when applying for student loans. The student borrower must carefully analyze the interest rates and payment terms applied in the loan.
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