Federal Perkins Loan

A Federal Perkins Loan, or Perkins Loan, is a need-based student loan offered by the U.S. Department of Education to assist American college students in funding their post-secondary education. The program is named after Carl D. Perkins, a former member of the U.S. House of Representatives from Kentucky.

Perkins Loans carry a fixed interest rate of 5% for the duration of the ten-year repayment period. The Perkins Loan Program has a nine-month grace period, so that borrowers begin repayment in the tenth month upon graduating, falling below half-time status, or withdrawing from their college or university. Because the Perkins Loan is subsidized by the government, interest does not begin to accrue until the borrower begins to repay the loan. As of the 2009-2010 academic year, the loan limits for undergraduates are $5,500 per year with a lifetime maximum loan of $27,500. For graduate students, the limit is $8,000 per year with a lifetime limit of $60,000 (including undergraduate loans).

Perkins Loans are eligible for Federal Loan Cancellation for teachers in designated low-income schools, as well as for teachers in designated teacher shortage areas such as math, science, and bilingual education. A percentage of the loan is cancelled for each year spent teaching full-time. This cancellation also applies to Peace Corps Volunteers. Cancellation typically occurs on a graduating scale: 15% for year 1, 15% for year 2, 20% for year 3, 20% for year 4, 30% for year 5. These percentages are based on the original debt amount. Thus after 3 years of service, one would have 50% of their original debt cancelled.

Student loans in the United States

* Federal student loans made to students directly: No payments while enrolled in at least half time status. If a student drops below half time status, the account will go into its 6 month grace period. If the student re-enrolls in at least half time status, the loans will be deferred, but when they drop below half time again they will no longer have their grace period. Amounts are quite limited as well. There are many deferments and a number of forbearances one can get in the Direct Loan program.[1] For those who are disabled, there is also the possibility of 100% loan discharge if you meet the requirements.[2] Due to changes made by the Higher Education Opportunity Act of 2008, it will become much easier to get one of these discharges as of July 1, 2010.[3] There are loan forgiveness provisions for teachers and health professionals serving low-income areas. Currently, certain loan forgiveness or discharges are considered income by the Internal Revenue Service due to 26 U.S.C. 108(f).[4]
* Federal student loans made to parents: Much higher limit, but payments start immediately
* Private student loans made to students or parents: Higher limits and no payments until after graduation, although interest will start to accrue immediately. Private loans may be used for any education related expenses such as tuition, room and board, books, computers, and past due balances. Private loans can also be used to supplement federal student loans, when federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of higher education.

Federal student loans in the United States are authorized under Title IV of the Higher Education Act as amended.

These loans are available to college and university students via funds disbursed directly to the school and are used to supplement personal and family resources, scholarships, grants, and work-study. They may be subsidized by the U.S. Government or may be unsubsidized depending on the student's financial need. The U.S. Department of Education published a booklet comparing federal loans with private loans.[5] In this same document, the government describes what you may use the loan for:

You may use the money you receive only to pay for education expenses at the school that awarded your loan. Education expenses include school charges such as tuition; room and board; fees; books; supplies; equipment; dependent childcare expenses; transportation; and rental or purchase of a personal computer.

Both subsidized and unsubsidized loans are guaranteed by the U.S. Department of Education either directly or through guaranty agencies. Nearly all students are eligible to receive federal loans (regardless of credit score or other financial issues). Both types offer a grace period of six months, which means that no payments are due until six months after graduation or after the borrower becomes a less-than-half-time student without graduating. Both types have a fairly modest annual limit. The dependent undergraduate limit effective for loans disbursed on or after July 1, 2008 is as follows (combined subsidized and unsubsidized limits): $5,500 per year for freshman undergraduate students, $6,500 for sophomore undergraduates, and $7,500 per year for junior and senior undergraduate students, as well as students enrolled in teacher certification or preparatory coursework for graduate programs. For independent undergraduates, the limits (combined subsidized and unsubsidized) effective for loans disbursed on or after July 1, 2008 are higher: $9,500 per year for freshman undergraduate students, $10,500 for sophomore undergraduates, and $12,500 per year for junior and senior undergraduate students, as well as students enrolled in teacher certification or preparatory coursework for graduate programs. Subsidized federal student loans are only offered to students with a demonstrated financial need. Financial need may vary from school to school. For these loans, the federal government makes interest payments while the student is in college. For example, those who borrow $10,000 during college will owe $10,000 upon graduation.

Unsubsidized federal student loans are also guaranteed by the U.S. Government, but the government does not pay interest for the student, rather the interest accrues during college. Nearly all students are eligible for these loans regardless of demonstrated need. Those who borrow $10,000 during college will owe $10,000 plus interest upon graduation. For example, those who have borrowed $10,000 and had $2,000 accrue in interest will owe $12,000. Interest will begin accruing on the $12,000. The accrued interest will be "capitalized" into the loan amount, and the borrower will begin making payments on the accumulated total. Students can choose to pay the interest while still in college; however, few students choose to exercise this option.

Federal student loans for graduate students have higher limits: $8,500 for subsidized Stafford and $12,500 (limits may differ for certain courses of study) for unsubsidized Stafford. Many students also take advantage of the Federal Perkins Loan. For graduate students the limit for Perkins is $6,000 per year.

Federal Direct Student Loan Program

The William D. Ford Federal Direct Loan Program (also called FLDP, FDSLP, and Direct Loan Program) provides "low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education . rather than a bank or other financial institution."

Following the passage of the Health Education Reconciliation Act of 2010, the Federal Direct Loan Program is the sole government-backed loan program in the United States.

Federal student loan consolidation

In the United States the Federal Direct Student Loan Program (FDLP) include consolidation loans that allow students to consolidate Stafford Loans, PLUS Loans, and Federal Perkins Loans into one single debt. This results in reduced monthly repayments and a longer term for the loan. Unlike the other loans, consolidation loans have a fixed interest rate for the life of the loan. Consolidation loans have longer terms than other loans. Debtors can choose terms of 10–30 years. Although the monthly repayments are lower, the total amount paid over the term of the loan is higher than would be paid with other loans. The fixed interest rate is calculated as the weighted average of the interest rates of the loans being consolidated, assigning relative weights according to the amounts borrowed, rounded up to the nearest 0.125%, and capped at 8.25%. Some features of the original consolidated loans, such as postgraduation grace periods and special forgiveness circumstances, are not carried over into the consolidation loan, and consolidation loans are not universally suitable for all debtors.

Cost of attendance

In education finance in the United States, the cost of attendance (COA) (also known as the price of attendance) is the estimated full and reasonable cost of completing a full year as a full-time student. The cost of attendance is published by each educational institution and typically includes:

* Tuition and fees payable to the institution
* Books and supplies
* Room and board
* Personal costs, transportation

As of October 29, 2011, every post-secondary institution that receives federal financial aid funds must post a Net Price Calculator that shows the institution's price of attendance — defined by the federal requirement as the sum of tuition and fees, room and board, books and supplies, and other expenses including personal expenses and transportation for a first-time, full-time undergraduate student — and determines for each prospective or current student a personalized Net Price, which is the difference between COA/POA and need and merit-based Grant Aid (not including work-study programs or government subsidized loans).

The published cost of attendance establishes the limits for qualified financial aid and student loans available to the student.

PLUS student loan

A PLUS Loan is a student loan offered to parents of students enrolled at least half time in eligible programs at participating and eligible post-secondary institutions or graduate and professional students at participating and eligible postsecondary institutions.
* Offered under Title IV of the Higher Education Act of 1965 (with subsequent amendments) and are therefore backed by the full faith of the United States Government

* Can be consolidated through the federal student loan consolidation program
* Become due for repayment immediately (ended as of July 1, 2008)
* The interest rate is fixed at 7.9% and charged from the date of the first disbursement until the loan is paid in full
* When taken by a parent, becomes a commitment by the parent, rather than the student
* Can be incurred in amounts that cover up to the entire cost of education (including living expenses), less other financial aid
* Offer different repayment plans, though there is no interest rate or accrual relief involved in any of the plans
* Eligibility is based on the parents or graduate students in question not having an adverse credit history

Federal Perkins Loan or Perkins Loan

A Federal Perkins Loan, or Perkins Loan, is a need-based student loan offered by the U.S. Department of Education to assist American college students in funding their post-secondary education. The program is named after Carl D. Perkins, a former member of the U.S. House of Representatives from Kentucky.

Perkins Loans carry a fixed interest rate of 5% for the duration of the ten-year repayment period. The Perkins Loan Program has a nine-month grace period, so that borrowers begin repayment in the tenth month upon graduating, falling below half-time status, or withdrawing from their college or university. Because the Perkins Loan is subsidized by the government, interest does not begin to accrue until the borrower begins to repay the loan. As of the 2009-2010 academic year, the loan limits for undergraduates are $5,500 per year with a lifetime maximum loan of $27,500. For graduate students, the limit is $8,000 per year with a lifetime limit of $60,000 (including undergraduate loans).

Perkins Loans are eligible for Federal Loan Cancellation for teachers in designated low-income schools, as well as for teachers in designated teacher shortage areas such as math, science, and bilingual education. A percentage of the loan is cancelled for each year spent teaching full-time. This cancellation also applies to Peace Corps Volunteers. Cancellation typically occurs on a graduating scale: 15% for year 1, 15% for year 2, 20% for year 3, 20% for year 4, 30% for year 5. These percentages are based on the original debt amount. Thus after 3 years of service, one would have 50% of their original debt cancelled.

Stafford student loan

A Stafford Loan is a student loan offered to eligible students enrolled in accredited American institutions of higher education to help finance their education. The terms of the loans are described in Title IV of the Higher Education Act of 1965 (with subsequent amendments), which guarantees repayment to the lender if a student defaults.

In 1988, Congress renamed the Federal Guaranteed Student Loan program the Robert T. Stafford Student Loan program, in honor of U.S. Senator Robert Stafford, a Republican from Vermont, for his work on higher education.[1]

Because the loans are guaranteed by the full faith of the US Government, they are offered at a lower interest rate than the borrower would otherwise be able to get for a private loan. On the other hand, there are strict eligibility requirements and borrowing limits on Stafford Loans.

Students applying for a Stafford Loan or other federal financial aid must first complete a FAFSA. Stafford Loans are available to students directly from the United States Department of Education through the Federal Direct Student Loan Program (FDSLP, also known as Direct).

No payments are expected on the loan while the student is enrolled as a full- or half-time student. This is referred to as in-school deferment. Deferment of repayment continues for six months after the student leaves school either by graduating, dropping below half-time enrollment, or withdrawing. This is referred to as the grace period.

Stafford Loans are available both as subsidized and unsubsidized loans. Subsidized loans are offered to students based on demonstrated financial need. The interest on Subsidized loans is paid by the federal government while the student is in school, during the grace period, and during authorized deferment. For unsubsidized Stafford Loans, students are responsible for all of the interest that accrues while the student is enrolled in school. The interest may be deferred throughout enrollment. Unpaid interest that is deferred until after graduation is capitalized (added to the loan principal).

Interest on Stafford Loans may vary and are determined based upon the date the loan was disbursed.

For variable rate loans, the rates are set annually using the price of the 91-day Treasury bill on the last Monday of May, and become effective for the following year on July 1. For fiscal year 2008-2009 the 91-day Treasury bill auctioned on May 27, 2008 at 1.905% (rounded to 1.91%) are used for the calculation.[2] On May 26, 2009 the 91-day Treasury bill was auctioned at an investment rate of 0.178%.[3] On July 1, 2009, the base rate for variable rate Stafford Loans were adjusted to 0.18%. Loans issued before July 1, 1998 were adjusted to a rate of 3.28%. Loans issued July 1, 1998–June 30, 2006 were adjusted to a rate of 2.48%.

As of July 1, 2006 all Stafford Loans are issued with a fixed interest rate. For Direct loans and most loan providers, the rate is currently set at 6.80% for unsubsidized loans, with lower rates for subsidized loans for undergraduates until July 1, 2012. The fixed rate for all new subsidized loans will then be changed to 6.80%.

Private student loan United States

A private student loan is a financing option for higher education in the United States that can either supplement or replace federally guaranteed loans such as Stafford loans, Perkins loans and PLUS loans. These are unsecured loans with various options for repayment and may offer forbearance and deferral options.

Interest rates are set by the financial institution that underwrites the loan, typically based on the perceived risk that the borrower may be delinquent or in default of payments of the loan. The underwriting decision is complicated by the fact that students often do not have a credit history that would otherwise indicate creditworthiness. As a result, interest rates may vary considerably across lenders.

Because private student loans are subject to special treatment in the event of a personal bankruptcy, students may not incur a total debt in excess of the cost of attendance, taking into account scholarships, fellowships, federal loans and private loans.

Different Tax Deductions Available to Students

Most students and their families are unaware of the range of tax deductions and benefits available to them.

* Reduction on educational grants, scholarships, fellowships, and tuitionGrants, scholarships, fellowships, and tuition are all taxable under U.S. law, but many such expenses are also tax-free when they meet the tax code requirements as explained in the appropriate IRS tax publication. Generally, scholarships and fellowships are considered tax free if the student is a candidate for a degree and if the money is used to pay eligible educational expenses.
* Hope CreditHope Credit provides for as much as $1,500 worth of tax relief per student. That amount can be deducted from the taxpayer's income tax return. Hope Credit is only applicable if the taxpayer's modified adjusted gross income or MAGI is $53,000 or more or at least $107,000 for a joint return.
* Lifetime Learning Credit. Lifetime learning credit is another type of tax relief given to benefactors of college students. This works in conjunction with the Hope Credit but the two cannot be claimed during the same year. Lifetime learning credit is worth a maximum of $2,000 for all students. The filer's MAGI should be between $43,000 and $53,000 for an individual or $87,000 to $107,000 for a joint return. Those with MAGI above $53,000 and $107,000 for single and joint returns respectively are not eligible to file a Lifetime Learning Credit for their sponsored students.
* Student Loan Interest DeductionThis relief can reduce taxes by as much as $2,500. The major requirement is that the student should have applied for and been granted a loan to finance his or her schooling. In order to qualify, the filer's MAGI should be less than $65,000.
* Student Loan Cancellations and Repayment Assistance. These two types of student loans are virtually tax-free, provided that certain requirements are fulfilled. To learn more, download the IRS form and publication online, which details the individual requirements that must be met to make these two loans deductible from your taxable income.

In addition to tax relief for loan-related income and fees, the tax code also addresses tuition and school fees.

What is a Default Student Loan

Student defaulted loans are any federal education loans that are not paid back according to the payment schedule on the promissory note. The loan can go into default after several missed payments. Two loans, the FFEL and the Direct Loan program, have a specific number of days that qualifies as default. For these loans, default occurs when 270 days progress without a loan payment. Having a loan in default is a serious blot on your credit score, and is something to take very seriously.

There are severe consequences to this problem, even with private student defaulted loans. The failed payments go on the student's credit history for many years, and often is the first item on the credit history. This makes it difficult for the student to be approved for other credit in the future, such as a mortgage or car loan. The IRS can withhold income tax refunds until the loan is paid back. A student who has default student loans can even have their wages garnished until the loan is out of default. Harassing phone calls from collections agencies and other problems follow a defaulted loan, making it important for students to avoid default whenever possible.
Possible Causes of Defaults
Many students end up in student loan default because of poor financial planning. They borrow more for their education then they can realistically pay back. When you add to this other debt, such as a car payment or mortgage, many newly graduated college students are setting themselves up for future financial disaster.

Another possible reason for student loan default occurs after the money has been borrowed. Sometimes, college graduates have trouble finding employment after they graduate. This can lead to default private student loan problems, and create difficulty to the student. This cannot be avoided, provided the student has been actively looking for employment. Student loan default statistics seem to indicate a growing problem with those with debt not being able to find employment. This is why legal ways to get out of student loan default have been created.

Avoid the Student Loan Debt

Today, more than half of all students graduate with a student loan debt of at least several thousand dollars. Many students graduate with tens of thousands of dollars in education loan debts. While paying for a university education is important in order to guarantee a good job, student debts can be a considerable problem. If students are earning only entry-level salaries after graduating, a large debt can be difficult to repay. The consequences of defaulting on student loans can affect student credit history negatively. Luckily, there are good ways to deal with education loans in a way that makes these debts affordable.

Before You Apply for Student Loans and Financial Aid

Most experts suggest that dealing with student debt begins at the application stage. When filling out student loan applications, students should:
Look for a Wide Variety of Financial Aid, Including Loans and Scholarships
When applying for student loans, experts recommend that students look for wide variety of student financial aid, concentrating on the least expensive types of financing. Students who get their financial aid from scholarships, grants, savings, work-study programs, as well as loans invariably spend less money and have smaller debts than students who get their entire school funding through loans.
Look for the Least Expensive Ways to Pay for School
To keep education loan debts small, look for free sources of funding first -- such as grants and scholarships. After that, students should focus on need-based federal student loans, which can offer great savings on interest rates. After that, students should look at private education loans, especially those with competitive rates. Student should rely on high-interest forms of aid -- such as credit cards -- only in emergencies, as these can quickly add up.
Consider Less Expensive Schooling Options to Make Financial Aid Less Necessary
Some students choose to attend public colleges, colleges close to home, or online or distance education programs. Each of these options is less expensive than a private college or university but can still offer quality education. Plus, these options still allow you to borrow for your education. If you can get a quality education from a less expensive source, you may need to take out less in student loans.
Apply for Need-Based Financial Aid if Possible
Applying for need-based government financial aid and government need-based loans is one of the least expensive ways to borrow for school.
Start Looking for Student Financial Aid Early
Experts stress that the earlier students are looking for financial aid, the more likely they are to get all the money they need without enormous debts. Many scholarships and types of aid are available to even grammar school age children, and of course starting to save early can help a student financially prepare for college or university.

Sources for Education Loans

If you're looking for loans for education, you may be surprised at all the different ways that you can get financial aid. The truth is, there's no single source for student loans and for financial aid. Each student will have to seek out and research a number of sources in order to get the best financial aid package possible. Whether you rely on private education loans, government education loans, education direct loans, scholarships, grants, or other sources, you will likely need several sources to find all your college funding.
Financial Institutions
If you're looking for education loans, financial institutions can provide you with flexible and competitively priced loans. In fact, many educational institutions, including Wells Fargo and Sallie Mae, offer special loans designed especially to meet student needs. These loans often have low interest rates and long repayment terms. In many cases, you can wait to begin repayment until after your education is complete or until after you're no longer attending school full-time. This allows you to focus on your studies rather than on your debt while you're still studying.
Banks
Banks today offer number of financial solutions, including loans, to their patrons. In fact, banks today even offer special student loans, which allow students to defer repayment until after school is finished. In addition, many students find banking services such as student credit cards and personal lines of credit, to be a flexible way to arrange for emergency loans or short-term loans during their degree.
Department of Education
The US Department of Education offers a number of federal loans to American students. If you're an American resident or citizen hoping to study in the United States, you can borrow money through the Stafford and Perkins loans, which are need-based and have very low interest rates. You do not need to start repaying these loans until after you finish your studies. If you qualify for need-based help from the government, the government will even pay for your interest while you are attending school.

If you are still a dependent on your parents, the federal government's PLUS loan can allow your parents to borrow on your behalf. Many students like federal government and US Department of Education loans because they have such flexible eligibility standards. Even if your credit is not very good and you don't qualify for traditional loan from a bank or other financial tuition, you will likely qualify for federal student loans.
Colleges and Universities
Colleges and universities offer their own financing solutions. You will certainly want to speak to the financial aid office of any school you're considering attending. Once you begin attending a school, one of your first stops on campus should be to the financial aid office. Colleges and universities often offer number of bursaries, grants, and scholarships to their students. These forms of funding, some of which are need-based and some of which are not, do not have to be repaid. Unlike a loan, you can simply use the money and never have to repay it. Sometimes, you can have your entire education paid for through college scholarships grants and bursaries.

Many colleges and universities also allow you to pay off your student fees and tuition gradually. If you work part time while also attending school, this monthly payment program may help you afford school. Some larger colleges and universities may be able to help you arrange for loans for education as well. Plus, your financial aid office will be able to help you learn about money and proper budgeting, which can help ensure that you make the most out of every dollar you borrow or get for your education.

International Educational Loans

International students have more expenses than the nationalized or US-born student. International students are often charged extra fees. They also often have to pay extra for transportation and do not often have the option of living at home while attending school. If international students also come from a country with an unfavorable exchange rate, they may well need a loan in order to attend school in the United States. Despite this, many types of loans are earmarked specifically for international nationals and citizens.

This does not mean that international students cannot attend United States schools. However, it does mean that students need to seek harder to find international student loans. Even though when it comes to student loans, international students have fewer options, there are still many choices and many types of available funding that they can draw on.
Taking Tests to Attend US Colleges
International students often have to take tests in order to attend school the United States. Commonly, international students need to pass the TOEFL to demonstrate that they are fluent enough in English in order to attend school in the United States. Often, in order to attend college or university in the United States, a high TOEFL score is required.

Additionally, students wishing to study in the United States must pass the SAT or ACT to demonstrate a basic knowledge of math, English, and reasoning skills. While both United States citizens and international students must take this test, they can be more challenging for international students, who do not always have the cultural references and language skills. In order to do well on these tests, international students may need to study longer or may need to seek help from qualified tutors. Doing well on entrance tests can help international students secure funding such as some scholarships, bursaries, and even loans.

Some colleges and universities may also require international students to take additional, school administered tests. Contact your intended schools well advance to ask for the exact qualifications, required tests, and procedures for international students.
Applying for Visa as an International Student
International students must also apply for a visa before they can arrive in the United States and study at a university there. In order to apply for and secure a student visa, you will generally have to show evidence that you have already been accepted to a college or university. Your school's international student office may be able to help you with the application process.

If you have good grades, you may find it slightly easier to secure a visa. Your visa will tell you exactly how long you are able to stay in the country to study, and will outline whether or not you are allowed to work while you attend school the United States. If you are allowed to work while attending school, you may find that you are limited to specific jobs; many federal work-study programs may not be available to you. Unfortunately, this may make it even more important for you to secure college funding and college student loans, simply because you may need to rely mostly on savings and loans to pay for your education, rather than creating a diversified financial aid package.

Get Education Loans With Bad Credit

Having bad credit simply means that you had trouble in the past paying your bills on time. You may have bad credit because you have been the victim of identity theft, because you have taken out too many loans, or, most likely, you simply have not paid all your bills promptly. While bad credit can make it harder for you to get the best loan rates -- or even any credit at all - today's bad credit education loans allow you to borrow money for your education. A bad credit education loan typically has different applications standard and eligibility standards, making it easier for even those with an imperfect credit history to get the best education possible. Education loans for bad credit are widely available from private lenders and from other sources. When it comes to bad credit education loan, student options are numerous, allowing almost anyone to get the money they need for school.


Get a Copy of Your Credit Report Credit Bureau
Check these reports carefully and report any errors, inaccuracies, or outdated information. Sometimes, correcting mistakes can dramatically improve your credit score and can make you eligible for many education loans.
Start Improving Your Financial Life So That You Will Qualify For Traditional Education Loans
If you don't have much of a credit history, consider getting a few bills signed over to your name and open a checking account. By paying your bills on time and balancing your account, you can build a good credit history. If you already have credit cards or loans, work hard at paying down your loans as much as possible.
How to Get Student Loans with Bad Credit -- Right Now
If you need to apply for student loans right now, because you are will be starting school soon, there are still several things you can do to get the best education loans possible:

Look into bad credit education loans from private lenders such as Sallie Mae or Wells Fargo. Compare several education loans designed for students with bad credit. Try to find the one with the best terms in the lowest interest rates. Even though you will not get the best rates, you can always consolidate later.
Consider Federal Education Loans
Education loans offered by the government -- such as the Stafford loans and the PLUS loans for parents -- tend to have more generous application eligibility standards. If you can demonstrate financial need, subsidized need-based loans will generally offer you at least some money. These loans do not consider credit history as closely as private lenders do.
Consider a Cosigner for Your Education Loans
If your parents have a good credit history, getting them to cosign with you means that your parents are partly responsible for your loan. Often, this makes lenders more secure and more comfortable with lending you money. Having a cosigner with a good credit history can help improve your chances that you will get a student loan and can improve the interest rates that you are quoted.
If You Have Bad Credit History, Compare Several Loan Options
Using online databases, your school's financial aid office, and phone calls to private lenders and companies, compare as many education loans as you can. You will find that even with bad credit, the interest rates and terms you are quoted on education loans vary widely. You may well be able to find education loan with an interest rate that you can deal with.

Continuing Education Funding

Private Sources of Continuing Education Funding
Private lenders are often the best option for continuing education loans. Companies such as Sally Mae even have a special loans designed just for continuing education students. In order to qualify for most of these loans, your continuing education program or school usually must be approved of by the lender. In general, you must be a US citizen or at least a US resident in order to qualify. Since you're borrowing money from a private lender, you must also have a good credit history.

Different lenders have different application processes for education loans. If you're a continuing education student who is borrowing money, however, you can expect that you will need to fill out a few forms, and you will need to submit to a credit check. The lender will then tell you how much money you qualify for. In general, companies such as Sally Mae offer loans for continuing education students that are at least $1000 to the total amount necessary for books, tuition, and other educational costs. In general, you cannot borrow more than your total education costs, and the amount of any financial aid or scholarships you receive is also deducted.

You must start to pay back these loans fairly quickly -- usually within a month of getting your money -- but you may choose to pay off only the interest at first. This gives you until after you graduate from your certificate program and have improved your money earning power before repaying the loan in full.
School Sources of Continuing Education Funding
Some schools offer their own educational loans and aid for continuing education students. This is especially the case where continuing education program is part of a larger school that also offers degree programs. If you are a continuing education student, speak to the center for continuing education at your school, and to the financial aid office of your college or university. You may find that you can pay for your courses gradually, that you qualify for some bursaries, grants, or scholarships as well as for school funded loans.

Alternative Education Loans

Banks and Financial Institutions
Your bank, credit union, or other financial institution can be a good place to get an alternative student loan. These institutions offer a number of loan and debt solutions for clients, and increasingly this has included the student population. If you wish to seek private loans from banks, however, you will need to compare several offers in order to get the best interest rate possible.
Employers
Employers sometimes help families pay for children's education by offering financing options of their own. For example, some employers help employees with education expenses such as education through private loans, through automatic deductions from paychecks, and other financing options.
Private Lenders
Companies such as Sallie Mae offer loans specifically to students. These tend to be competitively priced, flexible, and offer number of loan types for every student need. Better yet, many private companies now offer complete loan information and student loan applications online, giving students more control over their finances and greater convenience than ever before.

Best Education Loan

Most students and parents today realize how expensive an education is. Whether you hope to study at a private high school, a college, university, or an overseas school, tuition costs plus the costs of books and living can quickly add up. If you are worrying about the cost of school, you should not feel that money has to decide your education. There are a number of financial aid options that can help you. Educational loans can be one important part of your overall financial aid package. There are special distance education loans, need-based loans, college loans, government based loans, and private education loans -- in fact, chances are excellent that there are educational loans that can meet your specific needs.
What Education Loans are?
Educational loans work like any other debt. That is, loans are simply specific money that you borrow from a bank, a private lender, or some other type of lender. Afterwards, you must repay your debts with interest. However, unlike other types of loans, educational loans are different in several respects:
Different Qualification Features
Loans created for students recognize the fact that students have not had time to build up credit rating. For this reason, applications for student loans are simpler and more streamlined. The qualifications for such loans are also usually more lenient.
Generous Repayment Terms
Loans designed to help students pursue an education recognize that students should spend their school time studying, not working to repay a loan. For this reason, many loans created for students allow students to pay back their debts very gradually and only after graduating. This means that students can focus on their studies rather than on their loans. In fact, most loans designed for students give students the opportunity to put off repaying their debt until six months after graduation. This gives students a chance to settle down and find a job before repaying their debts.
Many Various Student Loan Types are Available
Since there are so many students, each with separate needs, there are a number of loans designed to help students pay for their education. Many of these loans are designed specifically to help students with their unique money issues. There are loans created by private sources, by the government, and by schools. Many feature very low interest rates. Some are need-based and some are not. No matter what a student's financial needs, there is likely a loan available that can help the student meet their educational goals.

Types of Student Loans

The first place to start when looking for education loans is to understand the types of student loans. They fall into three main categories, federal loans, private loans, and consolidation loans. Federal loans are usually the first type of loans that students think of. These are the Stafford Loans, Perkins Loans, and PLUS loans. Each of these loans are subsidized by the government, but actually taken out through financial institutions that are not related to the government.

Stafford and Perkins loans are the most commonly applied for loans for undergraduates. They are usually considered to give applicants fairly low interest rates on student loans. The interest on student loans is set by the government and is controlled by the current economy. The Stafford loan currently has a 6.9% interest rate, and the Perkins loan is lower, at 5%. The Perkins loan is one of the types of graduate student loans that are out there, but you must be able to show that you have significant financial need to qualify.

PLUS loans for students are designed for graduate students who cannot apply for any other type of financial aid because they have used their options completely. Private student loans are those offered by private institutions, such as a company or a school. Often students who do not qualify for federal aid can get a loan through a private program. A common type of private loan is a work study program for students, especially grad students. This gives the student a low interest rate on the loan in return for working for the college, university, or company.

Since private loans are offered by many different institutions, it is hard to say what the interest rate is on each loan. The best tip to finding a fair loan rate on a private loan is to advise you to shop around for the lowest interest rate on private student loans that you qualify for. This is probably going to be the best loan for you!