Federal student loans are loans issued to students in Kentucky and other states by the federal government that come with low interest levels and don't need to be paid back until you have received your diploma. Once you submit a Free Application for Federal Student Aid (FAFSA), the Department of Education generates a student aid report that includes the types of loans for which you qualify in Kentucky. You have to demonstrate at least some financial need in order to be eligible for federal aid. The government examines the income and assets of you and your parents to determine your level of financial need.
There are three different types of federal student loans issued by the federal government available to students attending college in Kentucky. The loans available are Stafford loans, Parent PLUS loans and private student loans. Stafford loans are issued directly to the college student and does not require collateral or take credit ratings into consideration. The second loan (Federal Parent PLUS Loan) is geared toward parents of undergraduate students. With a Kentucky college student loan, parents can borrow up to 100% of their son or daughter's tuition. Third, private student loans are credit-based, unsecured loans available to Kentucky students.
In this tough economy, many workers have experienced job loss and financial hardship in Kentucky. If you are out work, and have an education loan, many loan programs include forbearance and deferment benefits, allowing you to postpone payments for a pre-determined period of time. Although some lenders allow you to delay your education loan payments, others will not, and still others handle forbearance issues on a case by case basis. Contact our associates today to find college loans in Kentucky that will meet your needs.
In Kentucky and other areas of the United States, a Stafford loan is a government subisidized loan for undergraduate and graduate students. Stafford loans are affordable because they have low interest levels that are fixed. For example, graduate students can secure interest rates as low as 6.8 percent. Undergraduate students can take advantage of interest rates between 3.4 and 5.6 percent. Unlike non federal student loans in Kentucky, a Stafford loan doesn't require application fees, collateral, or credit checks. Contact our representatives today to find out more.
There are numerous benefits of getting private student loans to finance your education. For instance, many private student loan programs in Kentucky allow you to to delay payments while you're still in college. Other loans will require students to begin making payments while they are still in school. Other private loan options enable you to make interest-only payments while still enrolled in classes. That way, you can pay off the interest on your loan as quickly as possible, and save money on your Kentucky student loans in the end.