There are many student show gets confused about applying student loans with the term to get. There are things that must be remembered or questions to answer such as how much money you have to borrow, when you will start paying the money back, the interest that the money have and the years you are going to pay back the money. But the most important of all is; are you going for Federal loan or private loan? Many experts recommend of course Federal loan. To apply for it, you must complete your FAFSA here at fafsa.ed.gov. You can also read the following below:
Advantages of Federal Student Loans
- You do not need to have a co-signer to avail for the loan. The government will guarantee to give you the loan.
- Interest rates are set by the Congress and are lower than the private loans.
- The pay back methods are flexible and vary.
- The financial capability or needs will be factor to determine whether you are fit for the loan or not. Credit history will not affect.
- Flexible when an unexpected even occurs. It means you can put on longer term payments for your loan.
Disadvantages of Federal Student Loans
- The amount to be borrowed will be determined by the Congress too. It means that the loan may not cover all the education costs.
- The government has wide range of sources to get the borrowed money back. So, expect it will be deducted on your wages or added on your federal tax return.
- Federal student loan cannot be declared as bankruptable. It means your loan will not be erased.
It is good to know some advantages and disadvantages of Federal Student Loans. In this way, you can determine if you are fit for this type. You can try other Federal Student Aid if it does not suit you as long as you complete you FAFSA here at www.fafsa.gov.