Student Loan Programs are generally designed to offer a low interest rates and very flexible repayment terms than conventional car or home loans. But finding a low intrest student loan will require some serious work on your part. Federal loans, federally guaranteed loans, private loans, parental loans – how do you find the one that’s right for you?
Federal Student Loan Programs
Your first stop should always be the federal student loan programs. Even if you don’t think you are eligible, it is worth completing the standard application form and submitting it just to see if there are grants or other types of loans you might be able to obtain. Also, most colleges and universities require you to complete the federal form because they use the information it contains to assess your eligibility for state aid as well as their own institutional programs.
During the late 1990’s and the early 2000’s the interest rates on federal student loans were at historic lows. The rates have since moved back up some, but they are still substantially lower than those available through conventional loans.
Alternative Student Loans
There are alternative sources of low interest student loans if you look around a bit. There are many lenders with special loan programs for student needs that are similar but not exactly the same as the more well-known federal student loan programs. Most private lenders offer interest rates that are lower for student loans than for conventional loans, but they are generally still a bit higher than the federal rates. Shop around with several lenders, comparing interest rates, terms and conditions, and repayment requirements.
Despite the slightly higher interest rates of alternative student loans, they are a good option for many people who don’t qualify for enough other aid to fully cover their college expenses. Before you commit to any loan make sure you carefully compare all of your options, looking at long term benefits as well as short term expediency.
Maria Sundar is helping students finding a suitable Student Loan through the site http://www.my-student-loan.info