Different Types Of School Loans

Hi I am Prachi and I belongs to middle class family so I want to take loan for higher studies so can you please provide me the information about the different types of Students loan ?

[Kiran Chandar]

Hi Prachi here I am providing you the information about the different types of Students loan

Types of Student Loans

PLUS loans

Parent PLUS Loans –

Who Can Borrow

If you are-

U.S. citizens or eligible non-citizens.
Enrolled at least half time in an eligible degree or certificate program.

Parent PLUS loans are not based on financial need.

Loan Limits-

These loans have no annual or total borrowing limit.

Grad PLUS Loans-

Who Can Borrow

If you are-

Graduate or professional students who are U.S. citizens or eligible non-citizens.
Enrolled at least half time in an eligible degree or certificate program.

Loan Limits

These loans have no annual or total borrowing limit.

Stafford loans

Subsidized Stafford Loans-

Who Can Borrow

If you are-

U.S. citizens or eligible non-citizens.
Enrolled at least half time in an eligible degree or certificate program.

Loan Limits

Undergraduate independent and dependent students can borrow a maximum of $23,000. This includes:

Up to $3,500 in their first year.
Up to $4,500 in their second year.
Up to $5,500 in their third year and beyond.

Unsubsidized Stafford Loans-

Who Can Borrow

If you are :

U.S. citizens or eligible non-citizens.
Enrolled at least half time in an eligible degree or certificate program.

Loan Limits-

The base amount can be:

Up to $3,500 in the borrower's first year of school.
Up to $4,500 in the second year.
Up to $5,500 in the third year and beyond.

Consolidation loans

Eligibility-

Borrowers with one or more eligible federal student loans.

Loan Limits

None.

Institutional loans

They are non-federal aid provided directly by your school.

If you have institutional loans, contact your school to learn more about the terms of these loans.

Private loans and state loans

Private Loans-

Private loans may be an important option if the borrower does not qualify for other forms of aid.

State Loans

These loans' interest rates may vary depending on the state you are in.

Contact your state's office of education to learn more.

Perkins loans

Who Can Borrow

If you are-

Undergraduate and graduate students who demonstrate exceptional financial need and are:

U.S. citizens or eligible non-citizens.
Enrolled at least half time in an eligible degree or certificate program.

Loan Limits

Undergraduates can borrow up to $5,500 a year, for a maximum of $27,500.
Graduate students can borrow up to $8,000 per year, for a maximum of $60,000.