What is a student loan
A student loan is money that you borrow, which must be paid back. They are designed to assist you in meeting your total cost of higher education. The application process in applying for a loan can seem intimidating, but it not something one needs to be scared of. Not applying for student loans can prohibit students from attending the college or university desired. It is important to take time, become educated, research your different loan options and exercise your right to choose the lender you feel best meets your needs.
College loans are the ‘do-it-yourself’ portions of your financial aid award letter received after filing the FAFSA. The school is not going to apply for the loan for you. An application needs to be filled out for the respective loan, be it a Stafford loan, Federal Perkins loan, Direct or private loan to name a few loan types. Private student loans are different than Federal as Private loans are credit based and require an established credit history or a worthy cosigner. Interest rates are traditionally higher for private than Federal loans.
