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:

Financial Aid

 
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