Department of Education Loans

If you are one of the thousands of students who require money for college¸ you can end your worries by getting Department of Education loans. These loan programs are designed by the government to help the needy students enroll in college. Department of Education loans have simple terms and conditions hence easier to avail and repay compared to other types of loans for students.

What is the Difference between Department of Education Loans and Private Student Loans?

  • Department of Education loans are funded by the government while the private student loans are awarded by private lenders like banks.
  • You can have avail Department of Education loans on the basis of need while private student loans are granted on the basis of credit history.

What are the Types of Department of Education Loans?

Department of Education loans can be divided into three categories:

  • Federal Stafford Loans. These Department of Education loans have a fixed rate of interest. They are granted on need basis and are widely available to students. You can start returning the loan 6 months after graduation in these types of Department of Education loans.
  • Federal Perkins Loans. These funds are offered to students who demonstrate exceptional financial need thus not as easy to avail as the Stafford loans. You can start the repayment of these Department of Education loans 9 months after graduation.
  • Plus Loans. Designed for the parents of the students¸ these Department of Education loans allow the borrowers to support their children who want to pursue college degree.

How Can I Apply for Department of Education Loans?

The first step to apply for Department of Education loans is to file the FAFSA. You can also speak to the financial aid office of your school to apply for these funds. In case of Plus loans for parents¸ you need to have a good credit score. To apply for Department of Education loans you should also be a U.S citizen other than being enrolled in an eligible program at least at half time.