Student Loan Company

By: EconomyWatch Content   Date: 1 December 2009

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A student loan company is a non profit organization providing innovative and seamless student loan products and resources to students and their parents. A student loan company works to provide all the resources required by students to fulfill their educational objectives. Several types of federal and private student loans are available in the US. Student loan companies play a leading role in advising students about the type and amount of loan appropriate for them. These companies also act as a link between the students, parents and lending agencies. 

Loans Disbursed by a Student Loan Company

A student loan company helps students choose from a wide variety of student loans, such as:

 

Stafford Loans: This is the most widely used low interest loan, offered by the federal government. Stafford loans can be subsidized or unsubsidized, depending on the need of the student and do not require a credit check. The interest rate on subsidized Stafford Loans is set at 5.60%.

ParentPlus Loans: This category of loans is not need or income based. Parents who wish to fund the education of their children can avail of this loan from a student loan company. These loans carry a low fixed interest rate, which is currently set at 8.5%. ParentPlus loans are repayable over a period of ten years under the standard repayment plan. However, the repayment can be deferred in case of a hardship due to loss of employment.

 

GradPlus Loans: These loans are available for meeting the further educational needs of graduate students. The current interest rate on such loans is set at 8.5%.

Consolidation Loans: This combines a number of student loans into one. The overall interest rate on a consolidated loan may be less than the interest rates on a couple of individual loans.

 

Private Loans: These loans are available to undergraduate students or students attending an eligible associate technical or trade program at least half the time. The interest rate on such loans is a bit higher than that on federal loans.

A student loan company enables students to compare the various types of loans available and the interest rates and other terms related to them. This enables a student to take the right loan decision.


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