Looking for student loans? You have a lot of options. As a matter of fact, you have so many options that finding the right loans can be overwhelming. Thankfully, you can simplify potential loans by thinking of them in different categories. Below, we’ve listed the different categories of student loans. Knowing the different categories will help you make informed financial choices for your education.
State and Federal Loans
First, there are student loans that come from the government. Some come from the federal government, while others come from the state government. State and federal laws determine the loan terms. For example, those laws determine the loan’s fixed interest rates. They also determine who is and is not eligible to receive a loan. The federal government even offers a loan option for parents. With this loan, the student receives the benefits of the loan. However, the student’s parents are responsible for paying back the loan.
Bank Loans and Private Loans
Next, some students seek private loans instead of federal loans. These loans are funded by private entities, like banks, instead of the government. They come with pros and cons. The loans often have higher interest rates than federal loans. However, they also often offer lower rates for people with good credit, more personalization, and other benefits. Many students start with government-based loans and then supplement with private loans.
Credit Union Loans
Credit union loans are also private loans, but we put them in their own category because they offer better benefits than most private loans. First, since credit unions are nonprofits, they don’t see you as a source of income. Big banks, on the other hand, use student loans to get richer. Credit unions offer better interest rates than banks. They also generally have less stringent eligibility requirements. In addition, they have more forgiving terms than banks, and they even help the community that they serve. For example, you can find credit unions that exist specifically for students. These credit unions keep student needs in mind, so you’ll always get the best services.
Finding the Right Loans for You
Need help finding the student loans that will work best for your needs? Bundlefi is here to help. We connect our clients with their ideal financial institutions. When you need a loan or even just a checking account, Bundlefi will help you get started. Contact Bundlefi now to learn more about your choices. Using Bundlefi is easy and hassle-free.