You have seen that for many students, the dream of getting a higher education just isn’t possible without the financial aid of a student loan. Fortunately, there are many opportunities out there to apply for and receive a student loan and also give you all the knowledge you need to choose the best student loan for you. Below is some information I have given on regarding information about student loans.
There are two types of sources for getting student loans generally such as: the federal government and private financial institutions, such as banks. Both require repayment of the loan, but that’s where the similarities end. Let’s take a look at both federal and private student loans.
1. Federal student loans are sponsored by the government and account for the biggest chunk of educational loans.
Federal loan programs mainly contain the parts as: The Perkins Loan, The Stafford Loan, and The Parent Loan for Undergraduate Students, also known as PLUS.
A big advantage of this type of student loan is that it covers any remaining balance not covered by other forms of aid – in essence the loan limit covers your entire educational expense.
2. Second type is private financial institutions such as Banks. This is a loan from a financial institution that takes into account your creditworthiness, not your need for aid. Your credit is reviewed by lenders and if approved, you can get a substantial size student loan in minutes.
As I have mentioned above, you have several choices when it comes to student loans. Make sure that you choose the best option getting informed on these choices, and picking to student loan that best fits your needs.