There are several types of educational loans in the United States (private, parental, and federal). The money received under these programs is used to pay for the student’s tuition and living expenses. Up to half of all students in U.S. universities use educational loans.

Private loans are guaranteed by a U.S. citizen. To get a loan you must show proof of ability to pay (not only official income, but the availability of property is taken into account). Private educational loans have high interest rates. Parents’ loans can be taken out by the father and mother of a dependent student. The loan is for 10 years.

The loan rate is adjusted annually by the U.S. Congress. The grace period on the parent loan is 2 months. The loan is repaid in annuity or differentiated payments. If spouses get divorced, the loan is repaid according to state law or the provisions of the prenuptial agreement.

When you receive a federal loan, the U.S. government is the guarantor for your loan. The annual interest rate on your loan varies from 4 percent to 8.25 percent. This loan is available to U.S. citizens and legal migrants alike. Subsidized federal loans are available to students from poor families. The loan is repaid after the student receives his or her diploma. During the student’s education, the government pays the interest on the educational loan.

Unsubsidized education loans are available to students of all financial situations. The young person is responsible for repayment of the debt and interest on his/her own. To apply for an educational loan you need to contact the Financial Aid Office at your chosen institution. It is also possible to call a specialized organization (International Student LoanServices), which provides loans for international students.