A student loan is basically a type of unsecured loan usually meant to assist students in paying for college education and all the related fees, including housing and tuition, and other educational expenses. Student loans are given on the basis of need, which means that you must demonstrate to a lending institution that you have an income that will support them. The amount of a student loan is usually only a fraction of your expected salary, so it is imperative that you use this loan to cover your educational costs only. Most student loan programs are federally funded, meaning that the government pays all of the interest while you are enrolled in school. Federal student loans usually have better terms than private student loans, which means that if you have a poor credit score, you can still get a student loan with favorable terms. Private student loans have stricter requirements for credit scores. Click here to find out more -Student Loan Woes
Before applying for any type of student loan, you should carefully consider which type would be best suited to meet your needs. For most types of student loans, repayment terms are usually five years and are of fixed monthly amounts. Repayment terms for unsubsidized loans vary, with some lenders providing the option of deferring payments or having no deferral at all. Your lender may also offer a student loan consolidation program to combine your various student loans into one. This can often reduce your overall debt or interest rate, as well as extending the period of time over which you have to repay the loan.
You can save yourself money by consolidating your student loans. Under this program, your interest rates are reduced and the term of your student loan is extended. This means that you will not have to pay back as much as you would have if you continued to pay each of your different loans separately. If you decide to go this route, you should contact a student loan consolidation company to find out more about consolidating student loans and what your options are.