Government student loans for monetary support for education

A student who wishes to pursue higher education in a college or university of choice can initially apply for scholarships or any other form of free funding that would ensure that the finances required for education are taken care of. When scholarships are not obtained, government student loans are ideal options as they have low interest rates. These federal loans are paid by the government directly to the school that the student is enrolled in. The term school refers to the college or university where the student wishes to pursue either an undergraduate degree or a masters program.

Government student loans are provided based on the student needs and the Stafford Government student loans are categorized into subsidised federal loan programs and unsubsidized government loan programs. Subsidized loan program is when the interest for the loan amount during the period of study at school will be paid by the government.

1. 2/3 rd of the subsidized federal loans are provided for students hailing from a family where the adjusted gross income is less than $50,000 per year
2. ¼ th of the subsidized federal loans are provided for students hailing from a family where the adjusted gross income is between $50,000-100,000 per year
3. 10% of the subsidized federal loans are provided for students hailing from a family where the adjusted gross income is more than $100,000 per year

S.No	Level of study	Maximum limit of grant (in $)
1	Freshman undergraduate study	3,500
2	Sophomore undergraduate	4,500
3	Junior, senior and 5th year undergraduate study	5,500
4	Graduate study- subsidized	8,500
5	Graduate study-unsubsidized	12,500
6	Perkins Loan for graduates	6000

Further, undergraduate students who are dependant will get an additional $2,000 per year.

Stafford federal loan is a government student loan that has a low fixed interest rate at 4.5%. No repayments while the student is still at school. The Stafford loans require the student to submit a FAFSA form that needs to be submitted to the school. The school will decide the needs of the student and this will be used to determine the amount of loan. The eligibility for these government student loans is that the student should be a U.S citizen, a permanent resident or a non-citizen who is eligible for enrolment or who is already attending a school that participates in the Federal Family education Loan Program. Subsidized Stafford is provided to those students according to the needs as adjudged by the school.

Parents of dependant students who would like to put their wards through school and who require funding can opt for the parent PLUS program. This loan is provided to parents as well as to guardian who have a good credit score. The parent PLUS loans can be used for many uses related to their child or ward's higher education like tuition, supplies and even housing.

Graduate PLUS loan is a government student loan provided to those students who would like a loan to pursue higher education, it is similar to private student loan except for the fact that the rate of interest is fixed and the rate is low. The Grad PLUS loans can be deferred during the period of study. For most graduate students the interest on these loans is tax deductible.

Federal Perkins Loan is direct student government loan awarded to those students who exhibit an exceptional need and the interest rates for these loans are low. The loan amount will be received by cheque or will be credited into one's account and it will be received in 2 instalments. If the student attends at least half the number of days of school then the student has 9 months after graduation to begin paying the loan. The grace period for repayment is extended more if the student serves active duty with the military. A total of 10 years will be allowed to repay the loan.

Those students who have more than one government student loan are eligible for government student loan consolidation. Further, the student should have paid at least 3 full monthly instalments on time or should be in his/her 6th month master's program. The advantage of resorting to Government student loan consolidation is that the loan repayment period is extended and may vary between 10-30 years with the amount that is to be paid monthly reduced depending upon the amount of loan taken and the interest amount charged.

Government grant for paying off loan amounts is possible during certain extreme cases of monetary need or as a result of a major disaster. The Government student loans can also be exchanged for voluntary services that are rendered to the country. Government help in repaying medical student loans is possible if the physician or the qualified nurse agrees to work in remote areas or areas with limited facility for a pre-determined number of years.

There are many areas of work that if selected would provide federal government loan forgiveness. Areas such as teaching positions in elementary or secondary schools that cater to low income families or teaching children with special abilities, teaching subjects in which teachers are hard to get like Maths, science or foreign languages, law enforcement officer, nurse or a trained technician are some of the important disciplines, if taken up, will provide federal government loan forgiveness.

The government student college loans that are available in plenty can be used effectively to support college education and various options are also available to be eligible for loan repayment waiver. These options can be utilised to further one's education and career plans.

Some students also find that working part time or relying on savings can help them reduce the amount of loan they need to carry. By finding other sources of financial aid, you can reduce the amount you'll pay on your student debt. Even if you need to take out bad credit education loans, taking up the smallest loans possible will help ensure that you do not overspend on interest.

Bad credit education loans give anyone -- regardless of credit history -- a chance to pursue a quality education. If your credit history is too short or is imperfect, a bad credit education loan can give you the money you need to pursue higher education. After graduation, the chance to get a quality, high paying job can make your higher interest loan well worth it.

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