Oct

15

Student Loans

Tagged Under : Loans, Student Loans

Student loans, also referred to as education loans, are obtained for purposes of continuing education. These loans can be either federally guaranteed as well as private lender loans. Federally funded student loans have a few advantages that private lenders don’t; federally funded student loans have a fixed interest rate and can be repaid over a longer period of time. Where private loans, are usually set at a higher interest rate with more fees, and are due to be repaid in full within a few years of graduating. Student loans are classified in three major categories: student loans, parent loans, and private student loans.

Each loan is different with different guidelines and requirements. Federal law sets the maximum interest rates and fees that lenders may charge for federally guaranteed loans. Many lenders offer a variety of student loan discounts to attract borrowers, be sure that you read all the fine print before you sign any contracts or loan agreements. Federal education loans are available in two forms: direct loan or federally guaranteed student loan programs. The biggest difference between federal education loans and private loans is this: federal loans for education are made solely for the purpose of college, and cannot be used for any other purpose. Private loans for education loans are more flexible.

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