Types of student loans

Federal Family Education Loan Program

There are mainly major federal loans which are granted to the people, one of this is FFEL or Federal Family Education Loan Program which was first introduced in 1965, by the Higher education act. It is mainly funded through public and private partnerships which are both at local and national level. This Federal Family Education Loan Program is accounted for more than 80 % the federal loans. These are helping more and more Americans go to the college and have a better life. Till date more than 50 million American students have been helped by the Federal Family Education Loan Program.


The types of loans in Federal Family Education Loan Program are as follows:

Stafford

Government Student Loan Consolidation

Government student loan consolidation is a very good option for the students as they will be having the least interest rates and will be more beneficial to the students, it is irrespective of whether you have graduated or are still undergraduate. Government student loan consolidation plans have lower monthly payments, but the term may be longer. Now days the interest rates are very good, low that is and very helpful for the students. So go for it before the rates rise and take a market survey also so you can get the loan when the rates are least.


Some of the major pros of the Government student loan consolidation plans are:

• These are very ideal for those who have faced difficulties in paying back the loans.
• All your payments can be easily combined into one monthly payment with lower rates of interest.

Student Loan Consolidation Plan Categories

You can opt for any student loan consolidation plan according to your liking; there are basically four categories that you can choose from, the four categories are:

1. Standard Student loan consolidation plan
2. Extended Student loan consolidation plan
3. Graduated Student loan consolidation payment plan
4. Income contingent Student loan consolidation plan


Standard plan: This plan is offering a fixed rate of interest for short periods of time, up to maximum ten years. It requires monthly payments of $50 minimum in the time period allotted.