These days, especially in this hard economic time, graduating from a college or university is not an easy stuff. Financing for a college/university is really a challenge since university study is one of the most expensive investments to date. However, there are several loan options that might help undergraduate students to finish their study.

Basically there are three main types of student loan; the direct federal loans from the government, bank’s federal loans that are backed by the government and private loans that are not being backed up by the government. I want to talk about the federal loans options that are available for undergraduate students; and here they are:

Perkins Loans

This type of loan should be the first choice for undergraduate students since it has a low interest and currently the Perkins Loans has a maximum rate of 5%. The Perkins Loans was made to help students with low-financial income…If you are qualified for the type of loan, you should apply for one.

Stafford Loans

There are two types of Stafford Loans. So the first type is unsubsidized and is available for everyone, while the second type is subsidized by the government. The subsidized Stafford Loans is meant for students in genuine financial need. The Stafford Loans has a low interest rate, which varied from 5.60% (2009-10; subsidized) to 6.8% (fixed; unsubsidized).

PLUS Loans

PLUS Loans refer to Parental Loans for Undergraduate Students. This kind of student loan is the kind of loan that you use to cover 'attendance costs', which have many aspects such as tuition fees, books, room and board, transportation and miscellaneous expenses. PLUS Loans maximum interest rate is 7.9% and 8.5% if from a bank or non-government lender.

Conclusion

So, basically you should prioritize the Perkins Loans, then Stafford Loans and then Plus Loans. Search for the loan requirements and find out whether you are eligible or not. Lastly, never stop fighting for your education :)