Vital Student Loan Info

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Vital Student Loan Info

Student Loan Considerations To Take Onboard

Before you apply for a student loan, you have to know the most important facts about it. After all, it is not good to storm through something when you have no idea what it’s about.

student loanIf you, or your child, is about to start school, then you need to read and study at least a little student loan information so that you can prepare for the application and for the payment period.

You cannot just say that all you want to know is that it is possible for you to finish college even if you have limited funds of your own.

You have to plan your moves carefully and you will not be able to do that if you do not have the facts with you.

 

What is a student loan?

The most basic thing that you should know is what a student loan is, besides it being a lump of cash to tide you over while at college. It is basically a loan that you apply for so that you can finance your studies. You do have to pay the loan with interest after you have graduated. You should never confuse this with a scholarship. The difference between the person who has applied for a student loan and the one who has applied for a scholarship is that the former has to repay the money used for his or her education.

 

Education Loan Types

There are three main categories of student loans that you should know about. Well, to be more accurate, you can call them three types of education loans. The three are student loans, private student loans and parent loans. Student loans and parent loans are both granted by the federal government. The difference between the two is that parent loans are granted to families where the student is still fully dependent on the parents. The loan application’s approval depends on the credit score of the parents. Private student loans, on the other hand, are granted by private companies as the name of the loan itself suggests.

Should you pay for separate loans or go for loan consolidation?

This will depend on your own personality. If you are the type of person who can organize things efficiently, including making payments on or before time, , you may want to pay for your loans separately. You will save money this way. With loan consolidation, you need to pay more when the payments are added together. However, if you are the type who has trouble juggling your expenses and your bills, you may consider loan consolidation. Loan consolidation makes things easier for you because you only have to pay one bill. Your payment duration may also be extended up to 30 years. The installment payments are also lower. You only have to contend with the larger total sum.

 

Private or Federal Student Loans?

Federal student loans are regulated by the government. There is a maximum limit for

the interest rates that can be charged. However, federal student loans do not always sufficiently cover your expenses. This is when you turn to private student loans for the additional funding.

Additional student loan info can be found in the sites of the federal or private lenders. You can check them also to have updated information.

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