Tag Archives: Loan Programs

The Federal Student Loan Program was created to meet the financial aid needs of a variety of students. Therefore, not all student loan programs are created or distributed equally. The two primary student loan categories are public or private. The difference being that the former is funded by government programs and the latter is offered through private lenders. Generally, a federal student loan will have much more favorable terms than a private student loan. Stafford Loans The Federal Stafford Loan is by far the most popular government-run student loan program, probably because borrowers are not subject to a credit check, and since they also offer financial aid that is both subsidized and unsubsidized. The benefit to this program is, as long as you apply before your school’s funds run out, you can use a Stafford Loan as a form of non-need based financial aid. Students who utilize this form of financial aid are guaranteed one low interest rate over the life of their loan, and are allowed to defer student loan payments for six months following graduation or withdrawal, giving them time to find a job. In addition, financial aid is available to students at both the undergraduate and graduate … Continue reading