What are some bank loans for students?


Quick Answer

Some bank loans for students include Stafford loans, PLUS loans, Perkins loans and private student loans, states Forbes. These loans have attractive interest rates, and almost any student can benefit from them regardless of credit history or income, according to About.com.

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Full Answer

Stafford loans are the most common student loans, and the government pays for the interest rate in case the loan is subsidized, but if it the loan is unsubsidized, the student is responsible for the interest, notes Forbes. As of 2014 to 2015 academic year, the interest rate on this loan is 4.66 percent, and the maximum loan is $7,500 for juniors and seniors, $6,500 for sophomores and $5,500 for freshmen.

PLUS loans are unsubsidized, and they have higher interest rates than Stafford loans, explains About.com. As of the 2013-2014 academic year, the interest rate is 7.21 percent, notes Forbes. These loans do not have borrowing limits. The total cost of education for a particular year minus the existing financial aid package of the student such as scholarships, grants and other loans determines the actual loan amount, explains About.com.

Perkins loans are mainly for students with exceptional financial need, have an interest rate of 5 percent, and $4,000 is the maximum amount a student can qualify per year, says Forbes. Private student loans have an interest rate of between 3 to 12 percent, and they often require a cosigner.

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