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Higher education in America is highly expensive today and has become inaccessible and unaffordable to many deserving students. Today if you want to study in America, you may have to search for a rich relative and ask for financial help. Alternately, you could approach and take the help of various loan offers from the Federal Government. There are a lot of attractive student loans offered to students who want to pursue higher studies but cannot really afford it.

Here are a few student loan options available for needy and deserving students in America:
PLUS loans are given to undergraduates and graduates. The loans are granted by the government directly to the student who is enrolled at least half time. These loans come with flexible rates of interest and are capped at 7.9%. Private lenders and schools are also channels through which this loan is disbursed. However if you opt for the loan through these channels, interest rate charged is 8.5%. You also have to pay an additional fee. After obtaining the loan, students have to start their repayment over a period of ten years. Repayment starts within 60 days of disbursement of the final loan instalment.

Stafford loans are similar to the PLUS loans. This loan is offered to undergraduates and graduates. It is essential for the students to be enrolled at least half time. Depending on the needs of the student, the government offers partial subsidy on this loan. Repayment of this loan starts six months after completing the graduation. If the loan is not subsidized, then the student is not allowed the grace period of six months after course completion. Cap on interest rate is 6.8% for both unsubsidized and subsidized loan. Period of repayment varies between ten and twenty five years.

Perkins Loan is very popular among students who are financially backward. This is because this loan is offered at an extremely affordable and low rate of interest of 5%. This loan is offered to both undergraduates and graduates. Period of repayment is ten years. This loan is especially tailored for students aspiring to pursue a career in teaching, non-profit jobs, military and public service and is offered by the government. An important aspect to remember is the Perkins Loan is offered to students on first come first serve basis. The loan is disbursed through the colleges and schools only.

As a deserving student, if you want to choose one of the above loans and apply, it is important to follow a few steps. The first thing to do is to apply for the Free Application for Federal Student Aid or FAFSA. It is important to remember that your financial situation and exact needs determine whether the government will approve the loan for you.

Just applying for the loan does not give you any guarantee. A loan officer or a financial aid counsellor from a lending institution helps students with the loan application process. It is important to reach out for the loans well in advance to avoid disappointment.