Student Loans: Important Information

Going off to school can be a great time in a young adults life. It may also be a scary time when you begin to see all of the debt stacking up against you. If you have the right kind of student loan you do not have too much to worry about but some student loans can really drain you after you get out of school.

student loansIf you are not sure about student loans and you are trying to figure out a little bit more about what your options are then the following information is important.

There are three different general categories of student loans. 1. Federally Guaranteed Loans made by banks and other lenders. 2. Federal Direct Loans that are made by the government. 3. Private Loans.

Congress sets the interest rate paid by student on both direct loans and guaranteed loans. The government pay a subsidy to lenders that make the loans and also guarantees the loan amounts. Most private loans have terms that you are not so good and may leave you drained shortly after school.

Before you get any type of student loan you should make sure what kind it is and read through the terms thoroughly.

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