Nursing Student loan from Government
One of the federally funded loan programs is the Nursing Student Loan (NSL) program which has low interest and a long term repayment plan. All students studying for diploma, Associates, Bachelor and Master degree in nursing are eligible for the NSL. The NSL is a campus based program and the funds are allocated through the financial aid department of your nursing school. To apply for the NSL
- Check with your school authorities if they participate in the NSL program
- If they do, make sure you file the FAFSA without fail as the basis of NSL funds is the FAFSA application. If you forgot to apply the FAFSA in time, you can count yourself out of the NSL program
- Apart from FAFSA, separate application also needs to be submitted to the NSL program through the financial aid office of your nursing school
- Your application has to be submitted along with the Master Promissory Note that will be provided to you by your nursing school
- Under this program, preference is always given to students who require financial assistance
While these governmental loans are a blessing, not all are able to avail it. For one, Stafford loans and the state-based loans alone cannot cover the entire cost of education, let alone the other expenses. This is especially so at the graduation level. Also these loans have annual as well as lifetime limits and if they are met before your application is processed, you will be left high and dry. Furthermore the government nursing loans are aimed at helping disadvantages or financially needy students and if you do not suit any of these categories, you may have to seek financial help elsewhere.
As the government financial aid and federal student loans do not meet all education and other expenses, private lenders loan out required amounts. You may seek help from these sources; however this should be your last option. The simple reason is federal loans are not only affordable and flexible but also meet most of the educational needs of a nursing student. Private loans are designed to look convenient and comprehensive, thanks to lesser paperwork and good advertising, but eventually cost high.
Private loans are not all that bad, though. Since the federal financial aid can only help to a certain level, external sources of financial aid will almost always be required. The ideal way to utilize the private loans would be to avail as much federal or state financial help as you can and then seek out private lenders. While seeking private loans, research well to find the best one which has the lowest possible interest rate and a practical repayment plan. Also borrow only what you need to meet the educational expenses leftover by the federal loan.
For students with less than stellar credit history, prepare a back up plan like applying for the private loan along with a co-borrower with good credit and who is willing to stand by you. With a little planning and strict adherence to it, you should be able to rebuild your credit rating, for this make full payments and on time when you start repaying the loan.
Difference, Benefits and Eligibility of private loans
The first marked difference between federal loans and private loans is the absence of time-bound paperwork. Private loans do not require a FAFSA submission and can payday loans in South Dakota be availed anytime when required. The only prerequisites are a good credit history or a qualified co-signer. The second marked difference would be the interest rates. This varies from lender to lender and is generally based on the Prime indices or the LIBOR, with an additional credit margin.