Student loan | For the students of US
To pay for training American students can use the credit funds. In the US, for such purposes, there are 3 basic types of Study loans/student loan:
To simplify the system also provides for repayment of loans consolidation loan (combined loan), which brings together all the existing loans to one borrower.
Student loans have a low interest rate and the lack of security. Federal Student Loan Stafford Loan is divided into two main types:
Federal Family Education Loan Program (FFELP). Such loans give private legal entities (banks, savings and credit organizations). The federal government acts as a guarantor of repayment of these loans.
Federal Direct Student Loan Program (FDSLP). The management of these loans carries «Direct Lending School». They are issued by the government directly to students and parents
In turn, loans are classified on a subsidiary Stafford (subsidized), the interest on which shall repay the government, and Default rules (unsubsidized), the interest on which the borrower pays on their own. In this case, the student has the opportunity to get a reprieve on payment until graduation. Any student cannot take advantage of a subsidiary loan. Yet, for a subsidiary loan the student must document that really needs financial support from the state.
Conditions for students, which include parents
Students who include parents are able to obtain credit in the following amounts: the first course – up to 2625 USD, the second year – 3500 USD, and each next course – 5500 USD. Students have their own income, the opportunity to receive an additional loan of $ 4,000 USD for the first two years and USD 5000 in subsequent years of study. For graduate students provided the opportunity of the annual loan in the amount of USD 18,500, but only 8,500 USD of this amount is subject to subsidies.
The interest rate on student loans
The interest rate on student loans is variable. It is calculated by adding the 91-day rate of return on Treasury bills (T-bill rate) and 1.7% over the course of study. On graduation rate to be added another 0.6%. The interest rate set annually in a range not exceeding 8.25%. All lenders make loans at a flat rate, but nevertheless, each of them may individually give discounts for repayment by installments, and the electronic system.
Students and graduates of the difficult financial situation can get a soft loan Perkins (Perkins Loan). In this case, the lender is the institution that manages the funds allocated for these purposes from the federal treasury. Since this loan subsidiary, interest thereon shall be paid by the federal government during the period of study. The interest rate on the loan is 5%, the repayment term – 10 years. Also, the delay in payment of the loan for 9 months it sets the amount of the loan department of financial aid institution. For students, there are restrictions in the range of 3000 USD for one training course for graduate students – 5000 USD. The total amount of restrictions for students – 15,000USD, for graduate students – 30 000USD. Expanded Lending Option (ELO), institutions that are in the program for the expansion of credit, have the right to change the limit of restriction. In this case the amount of the loan increased by USD 1000 per year, the total amount of students – 5,000 USD, for graduate students – 10,000 USD. In addition to the loan Perkins provides simplified conditions for cancelation.
Credit for the education of children (Parent Loan)
Parents of dependent students have the opportunity to get a loan for the education of children (Parent Loan). The federal Parent Loan for Undergraduate Student (PLUS) – Federal parent loans, allowing the cavity to take the amount covering the cost of training, unlike student loans. PLUS Loans can be issued by private organizations and government agencies. The interest rate on this type of loan is made up of 52-week treasury bills yield rate T-bill rate and 3.1%. It can vary in a range not exceeding 9% threshold. Payments on the loan starting from the 60th day after the receipt of the loan, the term full repayment – 10 years. Parents have fully benefited obligations.
The private loan also referred to as an alternative (Alternative Loans). This type of loan allows you to receive the remaining amount of funds for the full fees as the loan amount under the government program is not enough sometimes. Alternative loans are given different types of private entities. For their preparation is not required to fill out a federal form.
Loan Consolidation – combined loan. This type of loan allows you to combine several loans granted to one creditor (eg, student and parent). This greatly simplifies the process of repayment. The combined loan can reduce the monthly payment amount by extending the full repayment of the loan. Unlike federal loans, which are issued for 10 years, provide an alternative repayment period from 12 to 30 years. The interest rate as an average of interest rates of loans combined. The rate is rounded to 1/8 in a big way but does not exceed 8.25% strength threshold.