College Student Loans

College student loans help finance higher education and they carry low interest rate. There are several types of college student loans. Stafford loans and Perkins loans are some of them. All these student loans need to be paid back and can be forgiven only in rare cases. Loans are much different from grants and scholarships, as it needs to be paid back within a specific period. College student loans only provide the necessary tuition fees. They are mostly used to supplement sources such as family and personal resources, grants, and scholarships. They also assist students who both work and study.
College student loans are offered to students to help them meet the financial obligations associated with being enrolled in colleges, universities, adult education, technical, law, medical and vocational schools. It is provided by the US Department of Education and is funded by the US Treasury Department. These loans are government subsidized and need to be paid back only after graduation.
Stafford loans are low cost student loans sponsored by the federal government. It is mainly provided to students pursuing higher education. This type of loan is granted based on need and the family income of the student. Here the government pays the interest annually for the student and hence the name subsidized loans. There are also unsubsidized loans were the students either has to pay the interest during their studies or it will be accumulated and finally added to the total amount. Perkins loans have low monthly interest and longer grace period. The only disadvantage of it is that it has very low borrowing limit.
The various processes to obtain college student loans are mostly intimidating, so there are various companies who help the students in attaining these loans. Students can also get loans online. The college student loan amount reaches the hands of the student through the college or university authority.