I’m going to be telling you guys about how long does it take to get a student loan and all the different types out there. What all they entail. Some pros and cons in choosing the right student loan for you or your student.
How long does it take to get a student loan
Usually, needs around 1 to 3 weeks to get a federal student loan. For Private, it’s up to 2 to 10 weeks. But there’s much more to know. it depends on the information I added bellow and also wanted to discuss grant scholarships and any other means of paying for your tuition besides student loans.
Types of student loans
- Federal loans
- Private loans.
These two categories come with an arrangement of different subcategories
First, let’s discuss federal loans for college
- Direct subsidized student loan
- Unsubsidized student loan
- Direct Plus Loan
- Federal Perkins Loan
- Direct Consolidation
- Parent Plus Loan
Direct subsidized student loans
These ones for undergraduate students who demonstrate some sort of financial need. So basically, you’re just going to go online, fill out your FASFA, They’ll tell you how much money that you qualify for and your interest will be paid during school and you won’t have any interest after school either.
This is your subsidized loan, which means your interest is going to be paid.
Direct unsubsidized loans
For this one, you don’t have to demonstrate any sort of financial need. You must be an undergraduate student, but your interest will not be paid, so you will have to pay interest at the end of the day.
You all have to pay interest during the school if you choose not to, but when it comes to paying your loans back, you will have to pay interest then.
Direct subsidized and unsubsidized loans are probably the most common ones.
I know that it says you need to demonstrate some sort of financial need for the subsidized loan, but let’s be serious. I have yet to see anybody turned down for a student loan. So if you’re reaching out to try to get that subsidized interest paid loan, dope for it, just apply. Go to the festival website, apply for it, and I bet you’re going to get it.
The Direct plus loan
The first two were for undergraduate students. This one is for a graduate or a professional.
The only difference between this one is you have to have good credit to get it. They do run your credit and see if you’re going to pay it back and figure out the cause for you, with your subsidized and your unsubsidized loans.
Student loan application
They figure out how much money they’re going to give you, and that is that. Now with your direct plus loan, they’re going to take the cost of attendance subtracted by any other student financial aid that you have. That’s the amount of money that you’re going to get.
if you don’t indeed have a reason to do the direct plus loan, you’re probably not going to qualify for it. (Like if you need $5, you’re not going to qualify for it)
This one is not much of a loan per se but in the way of repaying your loans back when it’s time. This is for undergraduate students. You have to have exceptional financial need. Which means you really need to put all of your loans underneath one loan.
The only thing about consolidating your loans is the fact that you lose all the benefits, the low interest. You lose all of those things when you consolidate, so make sure to think twice about that.
Federal Perkins loan
The next student loan is going to be your federal Perkins loan. This is for undergraduate students with exceptional financial needs.
Someone who seriously needs money. To pay for their tuition or for their books or for just things related to school. When you usually get a student loan, you’re going to have what’s called a loaner. The person who’s giving you the money, usually it’s going to be Sally Mae or nail net or whatever company that’s supplying your school or whatever with the money.
With your federal Perkins loan, your school is your loaner,
So you’re going actually to make your student loan payments back to your school. So it’s a little bit different, but you can definitely apply for that. Not all students do Perkins loans, but if they do, it’s a great thing to apply for if you genuinely need it to.
Parent plus loan
The last loan that I’m going to talk to you guys about is the parent plus loan. This is an undergraduate loan. It has low interest, and it’s actually for parents who want to co-sign so that their students can have a little bit more financial aid money.
What they’re going to do is they’re going to run a check, a credit check on the parents to make sure that they’re able to pay the money back if they had to or that they have good credit that they’re known for paying the bills, you know, stuff like that.
But the only thing about the parent plus loan is what if you have a child who decides that they want to not go to school, or they don’t want to pay that loan back. Then it does fall on the parents to make sure that that loan gets paid off.
Both the child’s credit and the parent’s credit is checked. It will destroy your child’s credit, and it will also come back and destroy your credit because you co-sign on it as well. So definitely take those things into consideration.
these are the loans supplied to you by the government, and they’re probably the ones that you’re a lot more familiar with. There are six types of federal student loans out there.
- School-Channel loans
- Direct-To-Consumer loans
You’re going to have your school channel loans, and you’re direct to consumer loans. Private loans are offered to you by banks or finance companies. Usually, they’re not connected to the school in any way.
The first one is going to be your school channel loans. This one is actually certified by the school.
It has a lower interest rate. But it can only be used for things associated with the school, like school books and things like that. They do reimbursements, but I’m not quite sure how often and if they don’t, just roll it over to the next semester and keep on using it to pay off your tuition and books and things like that.
Direct to consumer loan
This one can actually run you into a lot of trouble. It has a very high interest. It’s not associated with the school and it’s dispersed straight to the student, which means you can, you have a maximum course that you can borrow, but you can still borrow a substantial amount and you can use it on whatever you want to use it on.
You don’t necessarily have to use it on tuition and books as you should go out and buy that brand new pair of jeans or whatever that you want, which is not always a good thing.
But what I really don’t like about it is the fact that you really have to pay attention to how much financial aid that you have already.
So if you go out and get direct to consumer loan and you borrow more than you need, then you can actually be billed by your school. They can take your grants, and they can take your scholarships, they can take pretty much anything. They can take your lower interest loans away.
Pros and Cons of student loans
- You can temporarily postpone payments. If you may be having financial needs and not pay right now, or you’re going through something. Sometimes you can even get rid of your payments altogether. If you go into a particular career field.
- No forbearance or deferment with the federal loan
- Subsidized versions are available
- You have six months after you graduate to start paying unless you go less than half the time.
- Fixed interest
- You have to pay interest. (Variable interest) – So you might start off at 2% and get up to like 29%, and by the time it’s time to pay back.
- You actually have to pay for a wire in school. They’re not willing to wait.
So I hope this has been a very informative article for you guys. If you guys have any questions on anything that I discussed or you want to know about something else, make sure to put that down in the comment box down below.