However, most students must apply for student loans to help pay for the increasing cost of a college education today.
Making the decision as to what kind of loans are available for students, and what loan or loans are best for a particular student can be confusing. How does a student know what to do?
First of all, most students will get information about, and offers of, loans from the financial aid departments of the college or university that they plan to attend. Financial aid offers come in packages that sometimes include grants or scholarships as well as offers of loans from various government or private agencies.
What kinds of loans are typically offered? First of all, there are federal student loans that come from the United States Department of Education. You'll often see the words "Sallie Mae" associated with federal student loans. Sallie Mae is a U. S. government sponsored corporation that's permitted to offer loans to the public. It holds about a third of all education loans and is related to such other agencies as "Fannie Mae" and "Freddie Mac."
Federal student loans will offer low fixed interest rates as well as various types of repayment options and often offer repayment options with lengthy repayment terms. The financial aid office at your college is the best place to find information about federal student loans. You will also have to fill out an application for federal financial aid that's called a FAFSA. You will want to consider federal loans first because they offer some loans regardless of need and because the interest rates on federal loans and payback options are usually excellent.
There are also private student loans available. Terms on private student loans will vary according to the lender and will also depend on your own credit history. These loans come from private lending institutions.
Sallie Mae also offers a private student loan called the Smart Option Student Loan. You can find out more about these different loans, again, at your financial aid office.
There are many different places to secure student loans for financial aid as well as different types of student loans available. Every student who would like to apply for student loans should sit down with the financial advisor in their college's financial aid office or take a good look at the offers that are sent to them in their financial aid package. There will be student loans available that fit your individual needs as to how much money you need, what kind of terms you're hoping for and how long you feel you'll need to pay back the loan.
