An overview of students loans and the types
Loans are just a part of life for most students. Without applying for student loans, most of us could not go to school, complete a degree, and find a good job. In fact, more than two third of the students attending college today will need to apply for student loans. Luckily, many student loans offer relatively low-interest rates and borrower-friendly repayment options. However, limits do apply for loans, as there are limits to the amount you can borrow by loan type and only up to the cost of education.

Ensure that you don’t borrow more than your total education cost. Doing so may prevent you from receiving some of the gift aid you are eligible for. Federal loans provided by the government are usually the first choice for student borrowers. To cover college costs after exhausting the federal loan funding, institutional loans, which are offered through your school and private loans offered by private loan lenders are available. So what is the procedure to apply for student loans, the different types, and in what ways can you make them work well for you?

How can you start off applying for a student loan?

• The free application for federal student aid is also called the FAFSA.
• Before you start looking for a student loan to apply for, ensure that you fill the FAFSA form first, either online or in a paper form.
• Filling up the FAFSA is free.
• You just need to go to FAFSA’s government website and fill the form.
• In addition to being used for federal financial aid, the FAFSA is also used by state and school-funded programs, such as scholarship.
• If you are in high school, you definitely want to fill this out as soon as possible after January 1st during your senior year.
• If you are not in high school, you may still need to fill this out as soon as possible.
• Most financial aid is given out on a first come, first served basis, even though it is determined by several factors. So, the sooner you can get the FAFSA in, the better chances you have of getting the maximum amount of aid available to you.

What is a Stafford loan?

• These are offered directly to students.
• They can be used for different kinds of higher education.
• Stafford loans may either be subsidized or unsubsidized, based on your financial need when you apply for student loans.
• Subsidized loans mean that you do not need to pay any interest on the student loan you apply for while you are still in school.
• You begin accruing interest on the first day you receive your funding if your loan is unsubsidized.
• Parent loans for undergraduate students are offered to the parents of students by the United States Department of Education to help fund their child’s education.
• These loans are limited to the actual education expenses minus any other financial aid received by the student.

What are Perkins loans?

• These loans are available for both graduates and undergraduates.
• They’re guaranteed by the federal government but financed by your school.
• These loans are based on your financial needs.

What are the original terms?
It is an initial repayment schedule that was agreed upon:

• It is a 10-20 year plan
• There are income-based payments
• The initial agreement is modified to better suit your level of income; you will need it to be renewed every year as your income may change every year

What is deferment?

• Deferments are when payments cannot be made.
• A deferment does not get rid of payments, it simply delays them.

What are consolidation loans?

• These are meant for multiple, hard-to-manage payments
• They combine loans into one monthly payment
• they extend the length of the repayment plan
• Monthly payments are decreased

Which are the 10 best student loan refinance companies?
Here’s a list of the 10 best student loan refinance companies:

• Citizen bank
• College Ave
• CommonBond
• Connext
• Earnest
• Laurel road
• PenFed by Purefy
• SoFi
• Splash financial
• LendKey

When you are choosing an option for a student loan, ensure that you look at the interest rates. Even decimal points of difference can add up to huge amounts over the years. Also, the student loan debt does not automatically vanish or go away, even if you file bankruptcy! Only under very special situations, you will have these loans excused. One of these circumstances is death. You may actually be able to get your loans reduced or totally excused if you choose to work in the public sector.