Now a day loans are also provided for the study propose. The student loan can be taken by student and parent borrowers to combine their multiple education loans into one loan with one monthly installment. There are two types of student loans are provided first one is federal student loan and second one is private student loan. Any student can take either federal student loan or private student loan for their study. With the help of student loan any boy and girl make their education debt more easy and manageable.

Both the federal and private student loans are providing the benefits to the students. But federal student loan is having different benefit in compare to the private student loan like low fixed rate of interest, income base repayment plans, loan forgiveness and deferment options.  Some private lenders may offer them too.

Qualifying for the federal student loan you do not need of credit check. Borrower has to just complete the free application for the federal student loan aid.  For applying for the federal student loan you have to at least complete the half or full under-graduate or under graduate.

On other hand the private student loan is also known as the personal student loan or alternative student loan. The private student loan is provided for the paying the college fees, hostel rent, stationary and other expense, with competitive rate of interest than credit cards. The private student loan will apply when there is no choice left for the borrower. While applying for the private student loan from the lender you have to cautious because you will have to pay that amount with interest.

Qualifying for the private student loan you have to depend upon the credit criteria which established by the lender. Credit card criteria mainly differ with the private student loan.  Applying for the private student loan you have to eligible for your credit card report, your parent credit report, Delinquency problems, excessive debt loads and many more. Before applying for the private student loan you have to read the offer care fully.

There is a major different between federal student loan and private student loan. In federal student loan you have to give the fixed rate of interest while in private student loan the rate of interest is based on the credit card statement.

Therefore many borrowers should always exhaust federal student loan option before considering a private loan. If there is no option is left for borrower then only borrower will thing about for the private student loan.

Different financial companies lend student loans. There are federal loans as well. Unsubsidized and subsidized federal loans are available for the students. If you qualify for federal loan then prefer it over the private student loan. But you have to choose the loan that is right for you.

If you are a student then you can use following tips to find the right loan to finance your education.

1. Find out about the loans that are recommended to you. Search all the information related to the loans which you are considering viz. the eligibility criteria, the benefits and so forth.
2. Find out about the financial companies lending the loan.
3. Search for the information about different loans online.
4. Compare the interest rates of different loans. Find out the interest rate prevailing in the market and the interest rate that the financing companies will apply to the amount of loan that you borrow. Find out if the company is giving any discount on the interest rate and under what conditions the discount rate is applicable.
5. Clear all your doubts related to the payment options. Ask your lender about the repayment options you have. Also ask them of the penalties and the late payment fees they will charge in case you fail to deposit the repayment installment on time.
6. Federal loan given by the government are affordable and give you three types of options. This includes deferment, consolidation and forbearance. Find out about all the terms and also the benefits that they give you when you take the federal loan.
7. For federal loan you have to fill a FAFSA form. The form is then processed to find out that you are in need of financial aid to support your studies. If you qualify then the grant is given. The loan gives you the option of a grace period after which the interest on your loan begins to build up. Therefore find out everything you can about the loans for which you are eligible. If you are not eligible for federal loan then you can take student loan from private financial companies.
8. Private student loans are also available to finance your college tuition fees, hostel fees and other expenses on your education. If your parents are taking the loan for you then the lender will look into their credit score and other debts taken by your parent. Here you can use a cosigner for the loan.

Search for online options as well. There are private companies offering the loans online. Compare them and then take the decision.

Federal Perkin loan is a low interest loan available to the students to finance their graduate or undergraduate education. This is a low interest need based loan. Therefore the students who are in need of funds so that they can continue with their education can take the benefits of this financial aid.

About loan

1. It is a low interest loan with an interest of about 5%.
2. This loan is for the citizens of United States.
3. The student should have enrollment in an accredited college or university.
4. It is given to the students who are in need of funds to finance their undergraduate or graduate education.
5. The student has to qualify the basic conditions associated with the loan that include the exceptional need of the funds for education.
6. The loan amount is repaid by the students by promissory note.
7. Signing a promissory note confirms that the student accepts the terms and conditions of the loan.
8. The money of the loan in borrowed directly from the university where the student will take the education. The money repaid by the student is then returned to the university on the completion of the term and repayment made by the student.
9. The students are given a grace period of nine months after they complete the education and get employed.
10. During this grace period the loan amount does not incur any interest charges.
11. After the grace period is over the loan is to be paid along with the interest.
12. The loan can be put to deferment by filing the certificates so that additional six month are given to the students within which the interest is not applied to the loan amount but as soon as this term is over the interest begins to be added and the student has to deposit the amount with interest.
13. The loan amount repayment is cancelled in certain conditions. This facility is given to:

• the student taking up teaching as a profession in schools for low income family or
• the student providing services to the children with disability or
• taking up the profession of nursing or medical technician

How can you apply for loan?
You will first have to fill Free Application for Federal Student Aid common by its acronym FAFSA. This you will submit in the financial aid department of your university or college. Once the administration is satisfied that you need the funds for your studies then your application gets accepted.