Student Loans For Single Moms

If you’re a single mom and really want to go back to school, I suggest student loans should definitely be your last resort. While they can definitely be helpful, they’re loans, which means you have to eventually pay them back. But the bright side of a student loan rather than a private loan, is that almost anyone will qualify regardless of your credit score.

Your Children Can Help You With School More Than You Think.

There are three main types of federal student loans:

Federal Stafford Loans
These are awarded based on financial need and are regulated by the federal government. They can be obtained through a bank, credit union or directly from the credit union. There are three types of federal Stafford loans to chose from.

• Subsidized Federal Stafford Loan is long term, need based and has a very low interest rate. The word “subsidized” means the government will pay the interest on the loan as long as the student is in school. If you need to take a semester off, you’ll have to request a grace period or deferment or else you’ll start having to pay back the loan immediately.
• Unsubsidized Stafford Loan is long term, but not need based that also has a low interest rate. This type of loan is best for students who don’t qualify for any other types of financial assistance, or for those who need additional funds from other forms of financial aid. “Unsubsidized” means the borrower is responsible for the interest on the loan, however this payment can be postponed.
• Additional Unsubsidized Stafford Loan are reserved for borrowers that are classified as independent students determined by Federal guidelines.

Federal Plus Loans
These loans are available to parents who have children that are attending college either full or half-time. They are awarded based on credit history and cost of attendance. The interest is low but repayment usually begins within two to three months after the funds have been dispersed.

Federal Perkins Loans
Perkins loans are awarded to students who are in need of financial assistance. But, monies provided for these loans are usually very low. If a student drops out of college for more than nine months, interest will start accruing. One important thing to remember about these loans is that if you don’t pay them, it will be reported to the credit bureau which can damage your credit score.

Private Lenders
If you don’t qualify for federal loans, may be another option. These loans usually have a low interest rate but one usually has to have a decent credit score to qualify.