Students Loan Company: The Better Deal

2008-10-23 14:24:50

( Financial )



Half of our current college graduates have financed their college education through student loans. Chances are, you are among them and the chances are bigger that you will avail of a student loan from a students loan company at one point in your life or another.

The main bone of contention against student loans is that they are offered to students to assist in payment of the costs of professional education. These loans usually carry a lower interest rate than other loans and are usually issued by the government. Often they are supplemented by student grants which do not have to be repaid.

In the United States, student loans come in several varieties:
Federal student loans made to students directly: No payments are made while enrolled in at least half time status.

Federal student loans made to parents: It has a much higher limit, but payments start immediately.

Private student loans made to students or parents: There are higher limits and no payments are made until after graduation, although interest will start to accrue immediately.

The private student loans are not guaranteed by a government agency and are made to students by a students loan company such as banks or finance companies. The students loan company suggests that they combine the best elements of the different government loans into one and they generally offer higher loan limits than federal student loans to ensure that the student is not left with a budget gap. However, the accompanying risk for private student loans is that they have variable interest rates while federal student loans have fixed rates.

To be able to get the best students loan company, it is recommended that you go with a loan company that offers not only private student loans but also federal stafford loans, student loan consolidation and private consolidation loans to have the largest selection possible. Of course, you should never borrow more than you absolutely need. Compound interest can make a small student loan turn into a huge amount. Pick a fixed student loan rate and start date to do a comparison and make sure to checkout numerous students loan companies before making a decision.


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