Home » Finance » Loans

Various Student Loans, An In Depth Review

Jun 12, 2008
Direct Loans are a better deal for students and cost less for taxpayers. Direct loans are handled directly by the school you are attending. These types of loans typically have lower interest rates than most others.

PLUS loans require only that the borrower not have any adverse credit like bankruptcies and foreclosures. On the other hand, private loan interest rates are largely determined by your credit score. Plus colleges are often a cost effective stepping stone to full degree program. PLUS loans are at 8.5%. Student loans next is the all in one guide for education loans. PLUS loans can be consolidated with other federal student loans and may be a good alternative to private education loan programs for some student borrowers.

Lenders promote their products by advertising "as low as" interest rates, but the "as low as rate" may not be the rate that you will ultimately receive. Often, very few students actually qualify for the "as low as" rate. Lenders are required to provide APR information to prospective borrowers. Also, private loan borrowers should be aware that the formula used to calculate APR often will change depending on whether the borrower is in school or in repayment. Lenders need to present clearer information to students about loan terms and about the fact that students are better off obtaining all the federally guaranteed loans they can before seeking private loans. You can find more info at student loans next.

Lenders don't want clear information because student loans are a commodity, and if they let it behave like one, supply and demand will drive down prices. Lenders check with credit bureaus to learn whether a potential customer seeking a loan is likely to repay, based on the way other obligations have been handled in the past.

Borrowers of Short-term Emergency Student Loans must pay all delinquent debts before financial clearance can be given. See acceptable forms and type of payment . Borrowers pay an origination fee of up to 4 percent, which is deducted from the loan amount. Loan payments begin 60 days after the last disbursement. Borrowing to pay for your education is an important decision that only you and your family can make.Higher education is expensive but worth the investment of time, effort, and money.

Interest rates on private loans will vary so it's worth shopping around. As with any student loan, be conservative and only borrow what you absolutely need. Interest rate reductions and other benefits terminate upon loan delinquency or default. We reserve the right to modify or discontinue benefit programs at any time without notice. Interest rates are currently fixed at 5 percent, and a standard 10-year repayment program begins following the student's graduation or withdrawal from graduate school. Perkins Loans may also be consolidated with other government student loans.

Interest on the loan would accrue while the repayment is deferred, which can prove costly, but it provides an option for parents who can't afford to repay the loans while their children are in college. Interest rates on federal student loans can either have a fixed
interest rate or a variable interest rate. New loans first disbursed on or after July 1, 2006, will have a fixed interest rate.
About the Author
Jaison Jacob is an expert article writer. You can read a lot of student loans info articles at Stdent Loans Next
Rating:
Please Rate:
(Average: Not rated)
Views: 268
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources