Best Student Loans

happy college student using laptop computerWhile many colleges offer generous financial aid packages in absolute dollars, undergraduate students are often left to fill a gap between aid and the cost of attendance. That gap is most often bridged with federal loans, and sometimes even private loans.

As the U.S. Department of Education reports, researchers in the area of student loan debt believe that owing a monthly repayment amount that is greater than 12% of monthly income is a burden for borrowers. While the class of 2008 graduated into a recession, current and future graduates can benefit from lessons learned as well as a generally more flexible climate of student loan repayment (for example, the emerging popularity of income-driven repayment plans).

As students increasingly see themselves as loan consumers, they are bound to become increasingly savvy about shopping for the optimal education for their loan dollars. To that end, students are well advised to seek out the best student loans.

Top Student Loans

The best loans are Direct Subsidized Loans because the interest rate is fixed at a low rate. The federal government also pays the interest accruing while a student is in school. Other loans to consider include:

Private Lenders

As Investopia reports, there is no conclusive list of the best banks for private student loans, but the following providers are considered among the most reputable:

Alternative Financing Strategies

According to Forbes, students and parents should consider thinking expansively about borrowing. While the federal student loan and private student loan tracks are available, there may be other sources of private funding worthy of consideration, such as:

Frequently Asked Questions
What are the benefits of getting good student loans?Good student loans are a great help for students enrolled in any degree program. They allow students access to sources of funding at a minimal cost. They may also offer students the benefit of deferred payments, which means students do not have to worry about paying back the loan during their course of education. Good student loans also help students maintain a decent credit history, which proves beneficial to the applicants in the future.

Which are the best student loans for college?

Federal student loans are considered to be the best options for college students, as they offer the lowest interest rate and have lenient terms and conditions. They allow students the opportunity of deferred payments and a grace period to make sure students get enough time to find a job and start repaying the loan.

Are cosigners required for the best private student loans?

While cosigners are not usually required, you will get the best rates with a credit-worthy cosigner. A cosigner is liable for loan payments in case a student defaults. Other than a cosigner, private lenders also require a good credit history. A credit check is performed before approving a loan.

Financial Aid

 
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