What is a student loan?
Student loans are loans that are used to pay for education. In the United States, these loans are generally used to pay for education after high school. It’s very common for individuals to take out student loans to pay for college, both undergraduate and graduate.
What can these loans be used for?
Generally speaking, these loans can be used to pay for education and any accredited college, university, or trade school. Some private loans are available for schools that are not accredited.
What types of student loans are available?
There are two main types of loans that individuals use: private and federal. Federal loans are most definitely the best option as they are backed by the government. This lowers the interest rate and in some cases allows the student to delay making payments until after school is completed.
Who can qualify for these loans?
Federal loans for students are generally based on need. The government will give them to you as long as you don’t already have access to the funds required to pay for school.
Private student loans are quite different and are generally given based on credit history and ability to repay. Private loans generally have to be paid on while you’re still in school.
What are the most common loans used by students?
Without question, Stafford loans are the most used of all types of loans for students.