College Loan Guide

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					College loans are the most affordable option to pay for school. The two
biggest benefits of college loans are:

1. Lower interest rates than other student loans

2. Repayment is postponed until you are out of school.

Mainly there are two types of college loans.

1. Subsidized college loan: The government will pay the interest on the
loan while you are in school and during deferment and grace periods.
However, students must demonstrate their “financial need” to be eligible
for a subsidized student loan.

2. Unsubsidized college loan: Student is responsible for all the
interest, although payment is deferred until graduation. All students are
eligible for the unsubsidized college Loan.

Some reasons why college loans are best :

1. At present, interest rates are at an all-time low, i.e. 3.37%. In
school rates are lower, at 2.77%.

2. No credit check or collateral is required.

3. No co-signers or guarantee fee required.

4. Flexible repayment and tax deductions options are available.

5. You can qualify for even lower rates with an Automatic-debit discount
of 0.25% plus an interest-rate reduction of 2.0% after 48 consecutive on-
time payments.

6. College student loans are eligible for student loan consolidation.

7. You owe no payments while you are in school.

How to apply for a college loan?

Before applying for a college loan you should make a search on your own.
For a perfect search you should go to financial institutions and all the
student loan companies available in your area. Ask them about their terms
and conditions. Consider a student loan with the least student loan
consolidation rate. Local search for a college loan is not enough, you
are recommended to see websites of student loan companies, which provide
better options and then compare your research and choose the best option
suitable to you.

Don’t postpone it anymore. Get yourself a college loan as early as
possible. Most people are not making wise financial decisions. Be
different...

				
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posted:7/22/2011
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