Government Student Loans

Federal loans are provided for students with financial constraints to cover tuition, books and sometimes living expenses. But it takes quite a long time to process the loans. Owing to large number of applications being received for Federal student loans and the process involved, if one has not applied early enough one would be pressured for time. In this case another option to consider when such financial assistance is required to pay for college is the private student loan. This kind of loan can be processed within 5 days. Students with financial incapacitation obtain assistance by applying for grants, work and study programs or Federal student loans. Often times these sources are still not adequate to cover all the fees due to rising cost of tuition fees.

In situations whereby the local financial aid is not enough to cover expenses the student must resolve to alternate means to pay the excesses. Sometimes people draw from their personal savings or use their credit card to fill in the gap. Another good option is to go for a private student loan from a private bank. The private student loan is like a quick fix solution to financial problems regarding tuition. Unlike Federal loans it can be quickly approved and disbursed, usually within 5 working days. The money is disbursed directly to the student and can be used for multiple purposes like tuition, books or accommodation. There is no such freedom in Federal student loans as there are conditions as to how the money is disbursed and what it is used for.

Be that as it may, private student loans can be used for a various education related issues like laptop purchase, transportation, feeding, and so on. Although private loans offer a lot of liberty, the conditions to approve the loans are usually more stringent, hence it more difficult to get an approval for the loan. One of the conditions is a good credit ability which is not required for Federal student loans. This is a drawback for college students as many college students don’t have any credit history or neither a verifiable income since many do not have any corporate working experience. The interest rates on such loans are also very high when compared to federal student loan. In this case the monthly payments will be higher.