Student Loan

Looking for money for college? Our student loans have got you covered.

If you apply for financial aid, you may be offered loans as part of your school’s financial aid offer. A loan is money you borrow and must pay back with interest.

If you decide to take out a loan, make sure you understand who is making the loan and the terms and conditions of the loan. Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations. Loans made by the federal government, called federal student loans, usually have more benefits than loans from banks or other private sources.

Not all student loans are the same. Some are private, some are federally funded, some are designed to help financially needy students, and some offer borrower protection and lower interest rates.

The federal government issues some student loans. Federal student loans typically offer low, fixed interest rates. This makes them much more attractive compared to private loans offered by commercial lending institutions.

Many federal loans offer interest deferment programs, in which the government covers the loan’s interest while the student is studying. Students are not obligated to start paying on the loans until after they graduate.

Commercial lending institutions also offer loans to people entering college. Unlike federal student loans, private student loans require a full underwriting process.

Banks typically require borrowers to have a positive credit score and enough income to make loan payments. If borrowers do not meet those requirements, they may need a co-signer to be eligible for private student loans.

Borrowers should also note that private loans come with higher interest rates compared to federal loans, and may come due in a shorter period of time.