There are several basic types of loans for education available today. The Federal loans are known as Stafford and Perkins loans. Parent loans are called PLUS loans, and a parent or guardian with good credit can borrow money to cover the total cost of education minus the federal aid received. Then there are private student loans that a student can apply for from any lender that provides private education financing. The government is not involved with private student loans as it is with the other types of
Federal student loans that have been referenced above.
Keep in mind that beyond all the essential student loans, there are also many consolidation loans that provide you with the ability to combine more than one student loan into one consolidated loan. |
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Normally, this allows the ability to save on monthly payments, but can increase the total amount paid back if spread out over a longer repayment period.
When it comes to the government student loans previously mentioned, the government itself sets the maximum loan amount, rate of interest and fees associated with these Federal loans. The interest rate and other costs will be lower than what will be found on private student loans, however the loan amounts are also lower. The companies
and resources presented on this site feature private student
loans with limits of $40,000 per year and the funds are sent
directly to the student. |
