Undergraduate Student Loans

Undergraduate Student Loans are a common way for students to alleviate the financial burden that university costs can incur. Whether it comes from the federal government or from private entities, loans must be paid back with interest according to the allotted timetable worked out between both parties.

Types of Undergraduate Student Loans

The two main types of loans for college students are federal undergraduate student loans and private student loans.

Federal student loans are the single largest source of college loans. Some widely used undergraduate student loans are the Stafford Loan, the Perkins Loan and the Parent Plus Loan. Generally it is best to garner as much federal aid as possible because there are regulations in place that set the maximum interest rates and fees that lenders may charge.

However, private undergraduate student loans are a sector that is rapidly expanding and students commonly use these loans in conjunction with federal student loans.

What to do to acquire a student loan

The first step would be to ascertain the type of loan that would be best suited for your financial situation. As a general rule, students should only consider obtaining a private undergraduate student loan if they have reached the limit of assistance that the federal government can provide. Education loans come in three major categories: student loans, parent loans and private student loans. For more information about getting loans for undergraduates, visit the government's website at http://www.fafsa.ed.gov/.

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