Student Loans are sometimes a final option for students who cannot afford the cost of schooling on the current income of their families. American Hope Resources is committed to providing you with the best resources to make your financial journey easier.
Our American Hope Resources team has compiled the ultimate list of student loan resources below.
The Ultimate List Of Student Loan Resources
Every student must fill out the Free Application For Federal Student Aid form. Schools will use this form to determine whether or not you’re eligible for federal student loans. The FAFSA will also determine your eligibility for grants and scholarships.
Federal Student Loans
Federal Student Loans are loans made available by the Department of Education. The types of federal loans available include;
The PLUS loans are divided into Parent PLUS loans and Grad PLUS loans, available to parents and students pursuing a graduate degree. The PLUS loans are unsubsidized and have fixed interest rates.
Direct Subsidized and Unsubsidized Student Loans
These are also known as Stafford Loans. They are either subsidized by the government, paying the interest while you are in school, or unsubsidized, leaving you to pay for all the goods.
The Perkins loan is based on financial need and is a subsidized loan available to undergraduate students- the government pays their interest while in school.
Private Student Loans
Any loan, not a federal student loan, is qualified as a private student loan. The difference between these and federal loans is the flexibility in repayment terms or borrower protection.
These personal loans are not subsidized or funded by the federal government, so you might not enjoy the flexibility in repayment terms and security that federal loans offer. Banks, state loan programs, credit unions, etc., mainly finance them.
Repayment Plans For Student Loans
This repayment plan works if you expect your income to increase over time. With this plan, payments start at a low amount and increase every two years. All borrowers of federal loans are eligible for this, and you can enroll for this plan by contacting your loan servicer.
The income-Driven Repayment Plan requires you to submit information on your income and family size every year to stay enrolled. People who repay their loans under this plan are eligible for loan forgiveness after 20-25 years of qualifying payments.
Workers in public service can be suitable in as little as ten years. Some of the plans under the income-driven repayment plan include; Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR).
Extended Repayment Plan
This allows you to make a lower monthly payment over a more extended period than the standard repayment time.
You can either pay a fixed or graduated amount for up to 25 years, and you will only end up paying more than the normal repayment schedule would have cost you. However, there is more payment flexibility and a lower amount per time.
Standard Repayment Time
The standard schedule for repayment of your student loans is ten years (120 months). This is unless and until you arrange a different plan with your lender or loan servicer. The payments are usually a fixed amount over the lifespan of the loan.
To learn more from American Hope Resources check out their website at: https://americanhoperesources.com/