Low Income Students Loans: If you are a low income earner and you desire that your child goes to college, there is good news. Or, are you are a low income student struggling with financial challenges in school, this is the good news.
There are loans, college, or university grants and scholarships you probably should be aware of. This article presents to you some of those loans and scholarships available for low income students.
In this article also, you will get to know about what is loan for low income students. As well as available loans for low income students in the United States.
What is Loan for Low Income Students?
These are financial aid programs that are designed for the students who want to pursue college programs but do not have the financial means.
These loans are offered by the government on simple terms and conditions. This is to enable the needy students to pursue higher education in an easy way.
It also has a flexible payment plans that allow the under-privileged students to repay them without any problem.
Types of Loans for Low Income Students
The following are some of the types of loans for low income students;
1. Federal Stafford loans
Stafford loans are more widely available to students. This program is offered to students on the basis of need. Borrowers have to be at least half-time enrolled in a program to get these loans.
The interest rate of Stafford un-subsidized and staffed subsidized loans is 6.8% and 3.4% respectively
2. Federal Perkins loans
To avail Perkins loans, students have to demonstrate extreme financial need.
The rate of interest of Perkins loans is 5%. In Perkins loans, the grace period is 9 months.
How to Apply for Low Income Loans for Students
To apply for low income student loans in the United States, you need to complete the FAFSA. The information provided in this form enables the concerned department to evaluate what type of a loan program you deserve.
Students can also get in touch with the financial aid office of their school to know their options that fall in the category of student loans for low income students.
Benefits of this Loan
The benefit of loans for low income students in the United States of America is that there is a low interest rate. This makes them highly suitable for you coming from low income families.
Also, their interest rate is fixed. This makes it very easy for you to make the repayment knowing the exact amount of monthly payments.
Some Loans for Low Income Students in the United States
Obtaining loans for low income students in the United States of America is possible through both federal and private sources.
Below are some loans for low income students;
1. Stafford Loan Program
The Stafford Loan Program offers federal student loans to both independent and dependent students. It provides low income students loans in The United States.
The loans are available at the undergraduate and graduate level, and they are dispersed on a need basis. You will have to prove you are credit worthy for this loan. Your creditworthiness will depend more on your debt to asset ratio.
2. PLUS Loan Program
The PLUS loan program is an option for parents who are borrowing on behalf of a child. The PLUS loan program also assists students in directly paying for a graduate education.
Being one of the loans for low income students, it is not entirely need based. It also rely largely on a loan application proving the borrower is worthy of the credit extension.
If you have good credit, you will likely be able to take out a PLUS loan on behalf of your child. The one important thing to remember is it matures much quicker than other types of loans.
3. Private Student Loans
Another loan for low income students in the United States is the private student loans. Federal options are not the only choices for low income families seeking student loans.
In fact, they may not always be the best options. Private loans are traditionally more flexible. For example, you can only consolidate federal loans with other federal loans.
Private loans can be refinanced and consolidated in many different ways. Another key benefit is private loans typically only require one application.
Colleges that Offer Free Tuition for Low Income Students
· Harvard University
One of the colleges that offer free tuition for low income students is Harvard University. It is a private, Ivy League research university located in Cambridge, Massachusetts. It stands as substitution for low income students loans in The United States.
The Harvard University Library is the nation’s largest academic library and one of the largest in the world. Admission to Harvard University is need-blind. However, financial aid at Harvard University is entirely need-based.
The university provides a variety of undergraduate and graduates degree programs. The university has about 20,000 students and a 7-to-1 student/faculty ratio. The University is devoted to meeting the demonstrated need of all students.
· Columbia University
Columbia University, located in New York City, is a private, Ivy League research university. It is one of the universities that offer free tuition to low income students.
The university has three undergraduate schools. They are; Columbia College, the School of General Studies, and The Fu Foundation School of Engineering.
Parents with incomes of less than $60,000 are not expected to contribute any income to tuition, room, and mandatory fees. No student qualifying for Columbia financial aid is expected to take out loans as part of his or her financial package.
· Stanford University
Stanford University is a private research university located in Stanford, California. It offers undergraduate and graduate degree program in a variety of subjects.
Stanford has seven schools. They are; earth sciences, humanities and sciences, business, medicine, law, engineering, and education.
It reports that it values close interaction between undergraduate students and faculty members. The university also strongly supports student participation in research. Parent contribution is low enough to make sure all tuition charges are covered with need-based scholarships.
In a Nutshell
There is no need to bother any more about where to get education as a low income student. The above programs and schools provide the help you may need.
However, it is pertinent to state that, there also other schools that offer loans for low income students. Do well to carry out more research so as to know them.