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What are some student loan options?

What are some student loan options?

There are three types of student loans: federal loans, private loans and refinance loans once you leave school.

  • Federal loans are provided by the government, while banks, credit unions and states make private loans and refinance loans.
  • The right loan is key to taking on no more student loan debt than is necessary.

What is a Sallie?

Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years. In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation.

Who is eligible for a private student loan?

Eligibility requirements for private student loans include: The borrower must be creditworthy or have a creditworthy cosigner. More than 90% of private student loans to undergraduate students and more than 75% of private student loans to graduate students are made with a creditworthy cosigner.

Which loan does not have to be paid back?

Direct Subsidized Loans are available only to undergraduate students who have financial need. Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students. You are not required to show financial need to receive a Direct Unsubsidized Loan.

What are the best private student loan options?

There is no conclusive list of the best banks for private student loans, but the following providers are considered among the most reputable: College Ave Sallie Mae Discover Student Loans Wells Fargo Citizens Bank SunTrust PNC

Should you choose federal or private student loans?

Federal student loans have several repayment options. These repayment options are one of the biggest reasons to choose federal over private student loans. First of all, when you have a federal loan, you will not have to start repayment until six months after graduation. During that time, interest does accrue.

Is taking a student loan a good option?

For most borrowers, federal student loans are the best option. When you start to pay back your federal loans, the interest rate will be fixed, which will help you predict your payments after graduation. And in some cases, the federal government will pay the interest on your loans while you are in school – these loans are called subsidized loans.

What is the best interest rate for a student loan?

Comparing The Best Student Loan Rates. The best private student loan rates range from 3.99% APR to over 14.99% APR, depending on various factors – including your credit score, household income, cosigner, and more.