November 6th, 2011 | 
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Student loans can be categorized in many ways. There are subsidized, unsubsidized, private, and federal. Each type of loan has its own criteria for recipients as well as for the amount to be loaned.
Federal loans are divided into two categories, subsidized and unsubsidized. Subsidized loans do not accrue interest as long as the recipient is enrolled in a college or university; unsubsidized loans however, begin accruing interest as soon as the funds are released.
Loans issued by the federal government are usually controlled and managed by Sallie Mae, and in order to receive federal funds you must fill out a free application for federal student aid, or FAFSA. These loans require a student to be enrolled at least half-time, and require students to maintain a minimum grade point average in order to remain eligible for future funds. Finally, federal loans do not require payments as long as the recipient is enrolled in school and allow a 6-month grace period before a payment is due.
Private loans are loans received from a bank, as opposed to the government. Students are expected to apply for them individually, and are usually expected to begin making payments immediately. Private loans may offer better terms, larger amounts of money and better customer service. Private student loans may also be an option for a student who has not maintained the required GPA or credit hours to qualify for federal lending.
There are many different lending options for students that may be looking to acquire student loans. Regardless of income, grades, or time constraints, there is a loan option out there to suit each individual’s needs. Federal or private, there are many lending options. With all of the options available, anyone who wishes to earn a degree, whether it be an Associate’s Degree or a Doctorate, can do so.
Posted in Private Student Loans | 
Tags: Doctorate, Federal Government, Gpa, Grace Period, Grade Point Average, Half Time, Private Loans, Subsidized Loans