There are many types of student loans that the Federal Student Aid offers you after you completed your FAFSA. It can be confusing on which is the best one and which loan to get. Here are four types of loan that the Federal Student Aid offers.
Direct Subsidized Loans
They are only for undergraduate students who meets in the requirements for financial needs. The interest rates occurs after 6 months when you graduated from college and is one of the best loans they offer.
Direct Unsubsidized Loans
This loan is available for undergrads, graduates, and professional students. Anyone can get this loan where there is no need to show demonstration of financial need. With this loan you are responsible paying the interest once you receive this loan.
Direct Parent/Grad PLUS Loans
This loan is available for undergrads and graduate students. If you are an dependent undergrad student your parents can apply for this loan and will check your credit history if eligible. With the Grad PLUS Loan you need to be a graduate or professional student. You must have good credit to apply or have someone with good credit that will endorse you.
Direct Consolidation Loans
This loans allows you to combine any federal loans you have and turns into a single loan. With this loan it will have an fixed interest rate by averaging out the loans you want to combine.
When considering applying for a loan it always the best to do your research. The loans you can borrow from the federal government for education is the most affordable loan that have a low fixed interest rate.
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