Friday, 18 September 2009

Basics of Student Loan Programs

Those of you opting for higher studies often fail to arrange the required capital to fund your anticipated study program which might stretch to several years. There are many institutions that you can turn to for financial assistance about your education program. But you need to remember that except grants and scholarships, all other loans taken have to be re-paid in time. Many repayments start during graduation only. That’s why it’s very important to get a clear idea about various loans and their down payment structures.

Student loans can be broadly classified into 2major categories. One is Federal Loans and another category is Private Loans. Federal loans are government sponsored loans and generally carry fixed, low interest rates. This type of loan can be obtained through schools, banks and other student loans lending institutions.

But private loans, otherwise known as alternative education loans, are granted by private lenders and are obviously at higher interest rates than federal loans. Here, there are no federal forms to be filled. Moreover, you do not need to you’re your financial problems for the amount of the loan and there is also no maximum limit. But have to show a good credit score to avail this loan facility. If your credit score is not good enough for the lender, getting a cosigner of high credit standing to support your application may achieve those extra benefits for you.

1 comment:

  1. loved the way you explained things. Much better many here