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Alabama Student Loans

Students in Alabama are commonly in need of financial aid, just like students in any other part of the world. Student loans, in particular, are a common choice, as they are much easier to obtain than grants. The most regularly sought Alabama student loans are Stafford loans and Grad PLUS loans.

A Stafford loan is probably the most common loan for any student in America. A federal program, the Stafford loan is available to undergraduate, graduate and professional students. Those who can prove that they are in dire financial need will qualify for a subsidized version of the Stafford loan, which will mean that the government pays for the interest accrued by the borrower while the borrower is still enrolled in school. Recipients of the unsubsidized loan, however, will have to pay said interest during school. There is good news for those receiving any kind of Stafford loan: interest rates are low and, although capable of fluctuating, will never be as high as a private bank loan.

Alabama students can also apply for a Grad PLUS loan, which is also a federal program. Although the terms of a Grad PLUS loan aren't quite as desirable as a Stafford loan, it is still a very reasonable choice for those in need. For as long as a student is enrolled at least half-time, he/she does not have to make any payments on a Grad PLUS loan. Also, upon disbursement from school, a borrower who makes timely payments will see a small reduction in interest. There are no penalties for paying back a Grad PLUS loan early and payment schedules are quite flexible.

If you are a young Alabama student or the parent of one, then you may be interested in the Parent PLUS loan. This is the third most popular loan for Alabama students and is, like the loans noted above, a federal program. Designed for parents of college students who are financial dependents, a Parent PLUS loan comes in very handy for middle-class families. It is these families who have the most trouble putting their young children through college, as they make too much to qualify for grants, yet too little to pay for college straight out of their pockets. With a Parent PLUS loan, a parent can obtain a loan with low interest rates and a flexible payment schedule.

Paying for school is not easy, but we are here to help. OEDb's student finance section will help you find the money you need to pay your tuition and other college expenses. We cover scholarships, college grants, and student loans. Scholarships and grants are both forms of "free money", meaning they don't need to be paid back. Scholarships are typically awarded by businesses or individuals, with the money being earmarked specifically for tuition. They can be awarded based on a student's location or by religious affiliation, such as Catholicism or Islam. Grants are typically awarded by governments or non-profit organizations and the money often can be applied to several different expenses a student may incur, not solely tuition. They can be awarded based on location or ethnicity, for instance African American or Hispanic. Loans are not considered "free money", because unlike scholarships and grants, they do need to be paid back after graduation. Common federal loans include Perkins and Stafford. Loans are also available by location.