There are many different options that are available for student loans these days that make it a real buyer’s market for the student. Even better news is that there is fierce competition among financial loan companies which means even greater savings for the student.
The hardest thing you have to do is choose between the best companies and sort out which options each one has that best suits your circumstances.
Next, we will look at the options available to you as a student.
Options
Before you start looking at what’s available, it’s a good idea to have a pen and paper handy and take some notes. It’s also an idea to make a spreadsheet and list the pros and cons of each company’s loan details.
Federal
It is always a wise choice to choose the government loan over all others because they generally offer the lowest interest rates and also the longest term, making the loan available to almost everyone who applies for it.
You can also get it even if you have a bad credit rating or none at all. This type of loan is ideal if you have no income.
Historically, these types of loans are easier to obtain the worse your personal (financial) conditions are.
Private
These are the higher interest rate loans, but they can be a bit more flexible with what they can offer you. Most of these loans typically require certain financial criteria to be met in order for you to be accepted and may also require you to have a co-signer.
These tend to have credit and income requirements just like any other private loan, which means you’ll probably need a co-signer if you’re a young college student. If your financial situation is well established, this probably won’t be a problem for you.
There are a host of other options for you to consider as well, these are:
PLUS loans
Stafford Loans
Sallie Mae Student Loans
Many more private companies to choose from
That’s why it’s important that you make a detailed list of all the companies and loans that you think are valuable enough for you to consider and list all their pros and cons. This way you will be able to make your student loan choice very well informed.