Federal Student LoansLoans granted are based on the credit score of the borrower. The interest rates are fixed and comparatively low and repayment begins six months after the completing your graduation or a little earlier. These loans are guaranteed by the Federal Government.Subsidized Federal Students LoanThe Federal Government undertakes to pay the interest portion on the loan availed to the respective lending institution on behalf of the student while the responsibility to repay the principal loan amount rests the student. Also called the Stafford Subsidized Students Loan program, the approval is highly restricted.Federal Loan ApprovalStudents scouting for a subsidized loan should file the FAFSA. Proof of their financial condition and the need for financial assistance should be expressed by way of a FAFSA application. Part-time college enrollment is a minimum requirement to qualify for a federal subsidized loan. No credit check required. Independent students or students whose parents have a bad credit history can apply.Private Student Loan as an AlternativePrivate student’s loan is an unsecured credit based loan offered to graduate or undergraduate or continuing education students and their parents, where the students are at least 18 years of age. There is no question of choice, Private or the Alternative Student Loan option generally supplements the Federal Student Loan as the benefits offered by a federal loan is far more than private loans.Benefits of a Private Student LoanThe benefits arising from the Private Student Loan option
Maximum borrowing limits not fixed
Students can apply for a loan with credit worthy co-signers
Prepayment penalties, application deadlines and cancellation charges not applicable
Tax deductible interest on loans
Immediate loan processing procedure
Requirements for a Private Student LoanThe requirements to be satisfied are as follows Study in TERI approved schools
Proof of income and enrollment
A good credit report
Higher loan amount requires credit worthy co-signer