Student Loans


Student Loans

Student Loans

Student loans are considered to be loans that are designed for students to help them pay for college tuition, books, and living expenses. Student loans will usually carry a lower interest rate than most loans. Student Loans can also usually be deferred while the student is still in school. Student loans can be issued through the federal government or private banks. Private student loans are loans that are usually issued by lending agencies, where the credit requirements, interest rates and repayment options are set by the lending agencies instead of the Department of Education. Federal student loans are available for student and parents through the federal government with the same rates and requirements for the borrower.


The most common type of student loans is the Federal Stafford Student Loans. If your student completes the FAFSA, they will receive a letter or notification from the school letting them know what they may be eligible for in regards to the federal student loans. There are few advantages to look at when it comes to deciding on whether or not you want to pursue student loans. One advantage of student loans is federal student loans will carry a fixed interest rate through the life of the loan. So that means that student loans payments will not increase if the interest rate rises. Another advantage of student loans is the government will provide free insurance on your student loan, so in the event that you die or are disabled, you loan will be canceled. One other advantage of student loans is the government will allow you to defer your payment while you are still in school at least half-time. Finally, one last advantage of student loans is the government will not charge you a fee for paying off your student loan early than the intended payment schedule on your student loan.