Completing the Free Application for Federal Student Aid (FAFSA) form is the first-step to qualifying for a federal student loan. While filing a FAFSA form, remember to furnish accurate information. Remember, incorrect information may lead to cancellation of the form, levying of fines and even imprisonment. A FAFSA form must be submitted as soon as possible. This will help to increase the chances of loan approval.
A student, who is a US citizen or an eligible non-citizen, enrolled in a part-time or full-time education program can qualify for the following easy approval federal loans, despite bad credit:
Stafford loans: These loans may be subsidized or unsubsidized. Subsidized Stafford loans enable students to free themselves of the burden of interest payments during schooling. This is borne by the federal government.
Conversely, the borrowers of unsubsidized Stafford loans are liable for interest payments even during schooling. However, under unsubsidized loan programs, a student may chose to defer payments after graduation. Though Stafford loans do not require a co-signer, the amount offered under such programs depends on a borrower’s parents’ financial situation.
Perkins loans: These loans are intended for students having extreme financial need. The interest rate on Perkins loan is fixed at 5%, and they accompany longer repayment periods. Besides, the grace period on Perkins loan is around nine months, facilitating maximum payment convenience.
Students who fail to qualify for federal loans can apply for private loans with easy terms. Several sub prime lenders assure comprehensive education loans, though the repayment terms tend to be more rigid.
When you opt for financing college education through sub prime lenders, proceed with extreme caution as many lenders are involved in fraudulent deals and scams.