College Financing Options

College Student Loans: Federal and Private Loans

Federal Loans

The Federal Stafford loan is probably the most widely known student loan out there and it is available for most people to apply for. A student can apply for a Stafford loan by completing the Federal Direct Student Loan Program (FDSLP).

In addition, there is the Federal Perkins loan, as well as the Federal Parents PLUS loan available as other options for students and parents. These loans are all different in terms of what they require in order to apply and/or receive credit and an individual seeking these types of loans should contact the departments individually for more detailed information.

Private Loans

For those individuals who either already took out a federal student loan and need more money or just decided not to go with the federal loan process, there are private loans as another option. The only real difference with the private loans is that they are a little stricter when it comes to paying out the money.

When a student applies for a private loan, in most cases, they will be required to have their credit report run. This can be a slight problem is a student does not have a credit history yet. However, many students with little or not credit history usually will have to co-sign with their parents or guardians in order to have credit approved and to obtain the loan for college expenses.

Scholarships and Grants