Student Loans

Educational Direct® encourages all students to apply for the numerous free financial aid programs available before they go to college. However, when grants, scholarships, and work study are not enough to pay for college, student loans can help fill the gap. Student loans are different than these other forms of aid. They are borrowed money that must be repaid, with interest, just like car loans and mortgages. Because you are legally obligated to repay student loans, carefully consider the loan amount before you sign the promissory note.

Student Loan

A Federal Student Loan should be borrowed as your first loan option. Federal Student Loans have low interest rates, and there are no fees involved with the application. These include Federal Perkins Loans, Stafford Loans, and PLUS Loans. Applying for a Federal Student Loan is easy, and can be done by filling out the FAFSA (Free Application for Federal Student Aid).

College Student Loans

Once your Federal Student Loan options have been exhausted, you may still need more money for your educational costs. This is when you should apply for a Private Student Loan. Private Student Loans offer competitive interest rates and repayment options. Private student loans can also be used for rent, computers, books and any other college related expenses. Unlike Federal Student Loans, Private Student Loans are awarded based on credit. Co-signers will help those who are not credit-worthy in getting a Private Student Loan on their own.