Where is the best place to get a college loan, and why?
Sunday, August 23rd, 2009 at
4:44 pm
Martin L asked:
I need to take out a loan for room and board so I need to find the best deal for loan.
I need to take out a loan for room and board so I need to find the best deal for loan.
Tagged with: College Loan • Room And Board
Filed under: Student Loans
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You best bet are the student loans offered through the federal government. They have low fixed interest, low processing fees, do not require a credit check or cosigner, and have great repayment terms. You can apply for them by completing the application at and having the results sent to your school. Plus, by completing this application, you will be considered for other aid programs offered by the feds, your state, and your institution.
If you have not already, you should look into Federal Student Loans, these have one of the lowest interest rates out there for Student Loans; since they are backed by the Federal Government they also come with Federal Benefits that Private Student Loans don’t have.
Your Federal Student Loans can be used for travel expenses, books, food, school supplies, etc. What will happen is the amount that you are approved for and you agree to borrow will be disbursed starting with your tuition costs for that semester and then moving to your room and board if you live on campus, then satisfying any other school fees you may have. After that the left over funds will be sent to you, usually in the form of a check and you can do what you wish with those funds.
You are eligible for Federal Student Loans as long as you are attending school at least halftime. If you are below halftime status as a student you will not be eligible for Federal Student Loan help. Your status is determined by the school and the amount of credit hours you are taking during a given semester. For more information and for a chart which breaks down how much you can borrow a year please see the source below.