Getting The Right 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.
Stafford loans are especially advantageous. Your credit history is generally not a qualifying factor either since the government is assuming the responsibility for any default on the loan. The lending institution doesnt have to be as concerned with losing money on the loan.
The government also takes the responsibility for the interest accrued while you are in school and for the first six months after you are done with school. Obviously, this is a really great benefit to the borrower. Rather than accruing interest on the money youve borrowed throughout the entire time you are in school, you only owe the principal. This allows you proper time to concentrate on school and complete a degree.
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.
So, if you dont qualify, there are still other government guaranteed student loans you can receive. They continue to be the safest way to borrow money for school.
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.
Stafford loans are especially advantageous. Your credit history is generally not a qualifying factor either since the government is assuming the responsibility for any default on the loan. The lending institution doesnt have to be as concerned with losing money on the loan.
The government also takes the responsibility for the interest accrued while you are in school and for the first six months after you are done with school. Obviously, this is a really great benefit to the borrower. Rather than accruing interest on the money youve borrowed throughout the entire time you are in school, you only owe the principal. This allows you proper time to concentrate on school and complete a degree.
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.
So, if you dont qualify, there are still other government guaranteed student loans you can receive. They continue to be the safest way to borrow money for school.
About the Author:
Trinity helps people to find out about different types of guaranteed student loans including government guaranteed student loans.
posted by Credit Counseling at
4:27 PM
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