Bank of America Student Banking brings you some of the most convenient services to help you deal with your education needs. Student loans are of different types and knowing the features and requirements of different terms will help you choose the right one. The following are some of the different student loan types with their features and benefits.
The Federal Perkins Loan program and the William D. Ford Federal Direct Loan Program are the main student loan programs that are administered by the United States Department of Education. The Federal Perkins Loan program is a loan option for undergraduate and graduate students. On the other hand, the direct loan program is made up of two loan programs, Direct PLUS loans for parents and graduate students and Stafford loans for undergraduate students. Typically, you are allowed to repay your loans within 10 to 25 years, depending on the repayment plan of your choice.
On the other hand, a Stafford loan is a low-interest Information Panel loan offered to eligible students to help them cover the cost of their education at a 4-year college, university and community college or trade, career or technical school. Eligible students at the participating schools can borrow directly from the United States Department of Education. The amount of loan that your are eligible for with a Stafford loan is determined by the year that you have spent in the college as well as the expected contribution from your family. The federal government fixes the rate on Stafford loans and one can find the current interest rates on the official website of Department of Education.
As the name suggests, a PLUS loan for parents is specially designed for parents who wish to help cover the education cost of their children without using their home equity, credit cards or retirement savings. PLUS loans are made available to parents regardless of their income level. The amount that your parents can borrow is decided by subtracting the amount of the financial aid that you receive from the cost of attending a school.
Another source of funding your college is private loans, which are generally offered by lenders such as banks. Private loans are used when you have a gap between the cost of attending a school and the financial air or federal loans that have been awarded to you. Private loans can help you pay for tuition, living expenses, books and other expenses related to your education.