Since the early 60s of last century the U.S. government to lend wishing to pursue higher education, and now the country’s multibillion-developed support system for educational institutions. Student loan is a voucher, which directs the student to the institution which he chose for his study. However, over time it became clear that the allocated funds thus not able to cover all the costs associated with education, and began the search for alternative non-state funding sources. Therefore, along with government loans, there were alternative student loans.
Student loans have low interest rates, in addition, provide their financial institutions do not require the provision of security for the loan. Such loans require a wide variety of ways that you can return the borrowed funds. Federal student loans today are Stafford loans and Federal Stafford loans Perkins Perkins Loans.
The main federal program – a credit Stafford, and now there are two varieties of it:
• Federal Family Education Loan Program (FFELP) – loans provided by private lenders, and guarantee their return to a state
• Federal Direct Student Loan Program (FDSLP) – provides state loans directly to students and their parents.
Stafford Loans can be subsidized, in this case, the loan interest paid by the state, as well as unsubsidized, when the interest on the loan pays the student – either during training or at the end.
Perkins loan is issued to students who are especially in need of financial assistance. This credit will be issued by an educational institution based on the limited funds provided by the state. Interest on the loan is 5% for training and the next 9 months, he shall be paid by the state, the term of the loan repayment for 10 years. This loan is the best one available to students today.
If funds are allocated to federal programs are not sufficient to get an education, a student may receive a private or alternative loan.