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There are 2 types of Student Loans available to the general public: Federal and Private. Both have specific benefits and drawbacks.
The Federal government guarantees its student loans. They offer low interest rates, deferred repayment, subsidized interest payments, longer repayment terms and other interesting incentives, and credit checks are less rigorous than for other types of loans. To be eligible for Federal student loans applicants must complete the Free Application for Federal Student Aid (FAFSA).
Banks, credit unions and other lenders offer Private Student Loans. Private loans are given out based on the applicants’ credit and ability to repay the lender. Sometimes a co-signer is required. Their rates and terms depend on the lenders and borrowers credit. These loans are intended to supplement federal loan programs. The money from these loans may be used for tuition, books, living expenses, computers, etcetera.
Consolidation loans - Consolidation loans are designed to help you come out of financial requirements by reducing your monthly outgoings
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