Government Guaranteed Student Loans
So youve decided you want to go to college, but you arent sure how you are going to pay for it? There are several different scholarship and loan options available to future college students. If you do need to borrow money, youll want to be sure you receive the best loan possible for you.
Government guaranteed student loans are usually the least expensive to students. This is because the government assumes the responsibility for the loan so the lending institution doesnt have to.
For almost fifty years, these types of loans have been offered. The government assumes all of the responsibility of making sure the loan is repaid on time and in full. Any default on the loan is covered by the government so the lending institution doesnt have to be as concerned about losing money on the loan. Lenders wont use your credit score as a qualifying factor in receiving the loan. This is good news for some of you who may have bad credit.
There is also another way the government is involved in guaranteeing the loan. There is a specific kind of loan referred to as the subsidized Stafford loan. With this type of government loan, they take responsibility for the interest on the loan as long as you are in school and for the first six months after completion.
Many students are able to stay in school simply because they don't have to make payments on these loans during school. Interest doesn't even compound because it's taken care of by the government.
The six months after school gives the student time to find a good job so there is a greater likelihood of being able to repay the loan in full. Historically, a subsidized Stafford loan was always called a guaranteed government loan.
But now, any loan which is guaranteed against default by the government is referred to as a government guaranteed loan. Subsidized Stafford loans are still the least expensive loans since there is the benefit of not accruing interest, but in order to qualify for one, you have to prove financial need.
If you can qualify for these loans, they are definitely the best way to go. They will provide you with a reasonable time period without payments and are reasonable in their interest rates.
Government guaranteed student loans are usually the least expensive to students. This is because the government assumes the responsibility for the loan so the lending institution doesnt have to.
For almost fifty years, these types of loans have been offered. The government assumes all of the responsibility of making sure the loan is repaid on time and in full. Any default on the loan is covered by the government so the lending institution doesnt have to be as concerned about losing money on the loan. Lenders wont use your credit score as a qualifying factor in receiving the loan. This is good news for some of you who may have bad credit.
There is also another way the government is involved in guaranteeing the loan. There is a specific kind of loan referred to as the subsidized Stafford loan. With this type of government loan, they take responsibility for the interest on the loan as long as you are in school and for the first six months after completion.
Many students are able to stay in school simply because they don't have to make payments on these loans during school. Interest doesn't even compound because it's taken care of by the government.
The six months after school gives the student time to find a good job so there is a greater likelihood of being able to repay the loan in full. Historically, a subsidized Stafford loan was always called a guaranteed government loan.
But now, any loan which is guaranteed against default by the government is referred to as a government guaranteed loan. Subsidized Stafford loans are still the least expensive loans since there is the benefit of not accruing interest, but in order to qualify for one, you have to prove financial need.
If you can qualify for these loans, they are definitely the best way to go. They will provide you with a reasonable time period without payments and are reasonable in their interest rates.
About the Author:
Trinity helps people to find out about different types of guaranteed student loans including government guaranteed student loans.
posted by Debt Consolidation Loan at
3:59 PM
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