Student Loan Consolidation Rebate

Difference Between The Types of Student Loans?

Federal v. Private (Student Loan Consolidation Rebate)

Before the difference between these two types of loans, we'll set the record straight: federal loans (which are, or are guaranteed by the government) are the best choice when it comes to student loans. Private loans - as "alternative" loans known (from private lenders and banks, which should not) be insured by the government is entirely your last resort!

Wondering why?

The basic answer is reflected in dollars and cents: federal loans generally have interest rates private and have a fixed interest rate does not change. This means that you can pay less for the loan if repaid. Nice, right? Another reason federal loans are the best solution is that the protection (much more integrated for you, the borrower), that private loans do. (For example, the control of the government sends you is less likely to bounce!)

Debt Smart

There are several types of federal student loans Stafford loan, you (or do not pay interest while you are at school), the interest is not subsidized Stafford loans (you at school but the interest is relatively low), Perkins and loans, the federal government (reserved for students with the most attractive and the interest rate: 5%) are intended for all students. Your school will know that they qualify. The best way is to borrow to load in this order (that (s), you will have access to):

1. Perkins Loan
2. Subsidized Stafford Loan
3. Unsubsidized Stafford Loan
   

Going Private

If you choose an alternative, to borrow (a) directly from a bank or other lender, you must understand the risks and associated costs. Check the interest rate and see if it is to find a different, if there is a penalty for paying the loan early, and make sure you understand all the terms of the loan. You can also consult a parent or a financial adviser to provide the best possible deal. You can choose and select the type of student loans that meet your needs throughout the training. This may be a good opportunity for you to get a long training, but do not worry about the payment on time.

One of the best parts of student loans is that they repay the loan until the end of the school. You can continue to make loans to students, while they are in school, the cost of going to college to cover. You can also pay an additional 6 months after getting back your student loans. This is an excellent opportunity for you if you repay student loans, and for this reason, you can get your finances in order as you go through your school career.

Abstract:

Federal student loans offered by Sallie Mae (SLMA, the Student Loan Marketing Association) and sold to investors. The repayment of these loans is secured, student debt can not be dismissed, even if you subscribe to failure. Private student loans are on the other hand, is no different from any other unsecured personal loans. Why are not guaranteed, you will probably raise interest rates on student loans, private individuals who pay on federal loans. Student Loan Consolidation Rebate.