A student loan can provide you with the financial assistance that you need to get you through college. With a loan, you can concentrate on getting your education so that you will be able to jump-start your career as quickly as possible!

These days, student loans come in many forms. Loans are available to parents who are paying for their child’s education, loans for undergraduates, graduate, minority students, and many more! If you receive a loan, you can use the money for all of your educational expenses, including textbooks, living expenses, tuition, and buying a computer. Remember, when you receive a loan, you do have to eventually pay it back! Here are some types of loans that are worth checking into:

Private Educational Loans

If federal aid and scholarships just aren’t cutting the costs of your education, you might want to look into taking out a private loan. Private student loans are usually credit-based and unsecured, meaning that the borrower doesn’t have to provide the lender with collateral. All types of students can qualify for a private educational loan—whether you’re in undergraduate, graduate, or professional school. Private lenders like banks and loan companies usually provide students with loans that have a relatively low interest rate. Since each private lender is different, you might want to compare and contrast different rates before you make the decision to sign on the dotted line!

Federal loans

Did you know that the federal government has a $50 BILLION student loan program? It is therefore not surprising to note that the federal government provides the largest percentage of loans to students. One of the advantages of taking out loan from the government is that it is pretty much guaranteed—you don’t need collateral or jump through hoops to get aid. The conditions of a federal loan are generally more flexible than a private loan, but your college or educational program of choice has to be approved by the government first. To learn more about federal loans, click here.

Consolidation loans

Consolidation loans combine several different loans into one big loan from a single lender. You can consolidate your federal loans and some lenders even offer consolidation options for your private loans. Although there is a slight increase in your interest rate when you consolidate, there are no additional or hidden fees. Students are not able to consolidate their loans while still in school, but have the option to combine their loans once the loans enter the repayment stage.

Repayment plans

There are four types of student loan repayment options that consist of the Standard Repayment and a few other alternatives. While the alternatives have a lower monthly payment, you will end up paying more money in accumulated interest (and it will take you longer to pay them off!). Remember, if you choose to attend graduate or professional school, the government will defer your loans so you won’t have to pay them while you’re still in school!
• Standard Repayment – You will pay a fixed amount for a term up to ten years. Borrowers will have to pay a minimum of $50/month.
• Extended Repayment – This plan is similar to the Standard Repayment, but your loan term can range from 12-30 years.
• Graduated Repayment – This plan starts off with lower monthly payments which increase every two years.