Many students apply for student loan which does not think first about the terms to be discussed carefully. These terms include the amount of money to be borrowed, the starting period of your payment, the length of payment period and the interest you will owe. There are two types of loan a student can choose which are the Federal Student Loan and the private loan lenders. But many say to try first Federal loan from private loan. When you are going to apply for Federal Student Loan, make sure to complete first your FAFSA, here at www.wwwfafsaedgov.biz, or read the review below:
- Your credit history is not the factor to be determined when you are eligible for the loan. It will be based on your financial need.
- The government guarantees your loan and does not need a co-signer to be approved.
- The pay back methods will be determined by you and very flexible.
- It guarantees suspension and adjustment in case there are personal financial problems occurring on the payment period of the loan.
- Interest rates are lower than private loans.
What are the cons of the Federal loans?
- It cannot be declared as bankrupt so you loan will not be erased on the records.
- The amount that student can borrow is determined by the Congress. Which your education costs may not cover the loan.
- The government has wide sources of power around to get the borrowed money back. It means that the loan will be deducted on your salary or be added on your federal tax.
Knowing the pros and cons of Federal loans allows you to make a good decision for yourself. Though there are other Federal Student Aid solutions but you can access and think whether it is a good idea or not. But first, you must complete your FAFSA online and obtain your PIN.