College Loans

Summary


College Loans – The studentloan helps you finance your education. It helps you to pay off expenses related to your education. This loan amount received has to be repaid later. It helps you cover your tuition fees, couse related other costs and living costs. Documents applied for student Loan are :
• Your Passport or birth certificate
• Passport for residency status
• For bank account details: a printed paper from bank with your account number and name.
• If you have ever changed your name, marriage certificate will be required.

For each time you enroll for a study period, you need to apply for a student loan this can be twice in a year or yearly depending on your course and college. Apply as soon as possible even if you are not sure so that you get the loan amount on time.

Some important Terms related to a loan


Principal amount : it is the original amount borrowed from the lender. However, repayable amount is greater than the principal amount.
• Interest : the additional charge on the borrowed loan amount is termed as Interest. It is accrued on the Principal Balance.
• Service fee : it is the amount charged by the lender for lending the money.
• Consigner : he is a person who is responsible for repaying the money, as is the borrower. With the help of a credit worthy consignor, the borrower can get loan for which he may not qualify alone.

The Application Process of College Loans


Steps for application of a Federal Loan are :
1. Fill the FAFSA from
2. After a week of submitting FAFSA form, review your SAR.
3. Compare the financed aid packages
4. Sign your MPN
5. Your loan amount will be applied into your College Student Account.

Steps for Application of a Private Loan are :
1. After submitting application undergo a credit check
2. To increase your chance for loan approval add a consignor
3. After signing the promissory note, complete the Self- Certification Form
4. Accept the terms related to your loan
5. You will receive your proceeds regarding your loan from your college once they have been applied to your Student account.

Conclusion


According to studies, if students study with their own money or by taking loans they tend to do better academically than those who are not at all responsible for their cost of Education. If a parent wants their child to concentrate and study nicely and be responsible enough to pay their own college fees then, they will require a loan for it. For it, you can lend them your money; Intra-family loan or allow her to take College Loan. It depends whether she is in need for a full student loan or a bit aid, or even no financial support at all but the options of loans available are a Perkin Loan, Stafford loan (Subsidized), Stafford Loan (Unsubsidized) or a student loan (Private). The best student loans are Perkin loan and the Subsidized Stafford Loan, if not these then you can go for Unsubsidized Stafford loan and the last private student Loan.