Student Loan Programs Compared
Student loans are usually needed when grants and scholarships don’t cover the cost of attending school. It can be overwhelming trying to find the perfect loan when you’re comparing student loan programs. Often times the terms and rates can be confusing and hard to keep straight. Here’s a quick rundown of the most popular student loan programs and lenders.
The most popular student loan lender out there (in the United States) would have to be Sallie Mae. There are a couple of different loan programs that Sallie Mae offers. They offer private loans as well as two types of federal loans. Career training loans are available from Sallie Mae at a minimum of $1000. This loans can be used by people that are just starting a new education program or even for those that are continuing their education.
The loan can cover expenses that are school related like tuition, a computer, and living expenses. Both of these loans are low interest with few fees.
If you are just starting college or are still an undergraduate, Sallie Mae also offers up on option for Private student loans. Sometimes a student can’t get enough money to cover all of their tuition through federal loans. This leaves Private loans as the next option. Private student loans from Sallie Mae can also be used for all types of living/college costs and fees. Unfortunately, private student loans have higher interest rates which will make monthly payments higher when a student starts to pay them back.
Sallie Mae also offers international student loans for those that are going abroad to get an education. These loans have good rates, low fees, and allow you to choose your repayment plan.
There other options besides Sallie Mae. In the United States the government offers students other student loan options – PLUS loans and Stafford loans.
If a student needs money for tuition and a Stafford loan is available the student should take because they are usually the best case scenario repayment wise. With fixed interests rates reaching a low 6% and the fact that these student loans can be used for any type of college expense Stafford loans are a popular choice when available. A student will need to fill out a FAFSA in order to be able to receive a Stafford loan.
The other option offered by the United States government is a PLUS loan. Once again a student is required to fill out a FAFSA, which is a common procedure when attending college any, in order to have a chance at getting a PLUS loan. These student loan programs are offered at different interest rates to undergrads and graduate students or parents. The PLUS loan usually has the most minimal interest rate available which makes paying them back easier for the student.
These are a few student loan programs that are available to students. Finding a student loan can seem like a daunting task especially when looking at all the costs and numbers, but not everyone can get their education cost completely covered by scholarships and grants. Student loan programs help you pay for a student’s education costs so they can focus on learning and not on paying.
