Federal student loans provided        by government  Compare the differences between Federal         loans and Private loans
US Department of EducationLoans The US department of education offers different federal student loans for college student...
Types of Federal Loans Direct Stafford Loan Perkins Loan Direct PLUS loans Direct loan consolidation. Each has a numb...
Federal Loans – Loan Rates Loan Rates:   All government sponsored loans for college provide   fixed rates with a certain...
Private Loans – Loan Rates Loan rates for private student loans vary and are arranged by a lender instead of the fed gove...
Federal Loans – Max Amount For the highest possible total amount you can  receive for education costs, each federal loan ...
Private Loans – Max Amount Max amounts for private student loans has no limit; it all depends on a lenders judgment.     ...
Loan Consolidation Federal college loans give you an consolidation program option with a slightly better interest rate. ...
Federal Loans – QualificationProcess Most students requesting federal  loans for college have to show a  financial diffic...
Federal Loans – QualificationProcess Government funds are transferred to participating universities The universities act...
Private Loan – Qualification Process Sufficiently flexible on lending terms. Unlawful misconduct doesnt really matter fo...
Federal Loans - BankruptcyOption Difficult to file for private bankruptcy to get rid of  federal loans. The government o...
Private Loan - Bankruptcy Option Private student loan bankruptcy is not as severe as federal loans, but it is still treat...
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Federal student loans provided by government

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The US department of education provides various federal loans for college students. . Find out the details.

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Federal student loans provided by government

  1. 1. Federal student loans provided by government Compare the differences between Federal loans and Private loans
  2. 2. US Department of EducationLoans The US department of education offers different federal student loans for college students. Some of benefits of Federal Loans include  Lower interest rates  Grace-periods  Convenient payment terms Student Loans Info Center
  3. 3. Types of Federal Loans Direct Stafford Loan Perkins Loan Direct PLUS loans Direct loan consolidation. Each has a number of rules and eligibility for each student to be eligible. Student Loans Info Center
  4. 4. Federal Loans – Loan Rates Loan Rates:  All government sponsored loans for college provide fixed rates with a certain amount of grace periods upon graduation  Federal Perkins loan  Interest rate: 5% fixed  Grace Period: 9 months  The purpose of Federal Loans is to help students pay off student loans faster by providing many advantages Student Loans Info Center
  5. 5. Private Loans – Loan Rates Loan rates for private student loans vary and are arranged by a lender instead of the fed government. Private loans also have strict repayment selection and more higher service fees such as a huge origination flat fee. If a private loan company is authorized by the university, it often offers lower rates compared to Direct private student loans from loan companies who are not accredited.. Info Center Student Loans
  6. 6. Federal Loans – Max Amount For the highest possible total amount you can receive for education costs, each federal loan may have a different limitation. Ex: The Perkins Loan limit  Undergraduate students:$5,500 per year  Graduate students: $8,000 per year  Entire loan amount for undergraduate: $27500  Entire loan amount for graduate students: $60000  Includes the amount for their undergraduate loans. Student Loans Info Center
  7. 7. Private Loans – Max Amount Max amounts for private student loans has no limit; it all depends on a lenders judgment. Student Loans Info Center
  8. 8. Loan Consolidation Federal college loans give you an consolidation program option with a slightly better interest rate. However, private student loans cant be consolidated with federal loans. Student Loans Info Center
  9. 9. Federal Loans – QualificationProcess Most students requesting federal loans for college have to show a financial difficulty to be qualified. No credit score required If an individual has formerly committed misbehavior such as felony, one will be ineligible for government financial aid despite financial reasons. Student Loans Info Center
  10. 10. Federal Loans – QualificationProcess Government funds are transferred to participating universities The universities act as loan providers and make final judgments on qualification for their students. Student Loans Info Center
  11. 11. Private Loan – Qualification Process Sufficiently flexible on lending terms. Unlawful misconduct doesnt really matter for receiving a loan. Look at credit score as a lending measurement. If a college student or a students parents has a great credit rating, he/she has a higher chance to receive a great rate of interest and many other benefits. Approval rate through private lending institutions is more than seventy five percent. Student Loans Info Center
  12. 12. Federal Loans - BankruptcyOption Difficult to file for private bankruptcy to get rid of federal loans. The government only permits a education loan bankruptcy under "undue hardship."  the definition of “undue hardship”: very restrained for average individuals to be qualified. Private student loan bankruptcy is not as severe as federal loans, but it is still treated differently than traditional credit card liabilities. Student Loans Info Center
  13. 13. Private Loan - Bankruptcy Option Private student loan bankruptcy is not as severe as federal loans, but it is still treated differently than getting rid of traditional credit card liabilities. Student Loans Info Center

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