About Education Loans
An education loan, or student loan, is a form of financial aid provided to students in order to pay for college tuition, books, study materials, and living expenses. Education loans are designed to be favorable to students: they have a relatively low interest rate compared to other loans in addition to a flexible repayment schedule. More than $125 billion in Education Loans and financial aid are awarded every year to eligible college students nationwide. This level of financial aid ensures that many students who otherwise could not afford college can pursue a higher education.
Benefits of Education Loans
With the cost of college continuing to rise, many students and families rely on financial aid and education loans to cover the costs of college. For many students, education loans provide a low-interest, student-friendly borrowing solution that provides the necessary funding for college. Not only are education loans helpful for many students, but there are many different types of education loans available, meaning students can research their education loan options and find the one that is perfectly suited to their borrowing needs.
Types of Education Loans
High school graduates and college students today have a large number of educational loans to choose from. Each loan comes with its own benefits and requirements, so it is important to thoroughly research your loan options before applying. You can learn about the different aspects of student loans through our Paying For College Guides, and you can find and compare private student loans by using our Student Loan Comparison Tool located at the top of this page.
A number of private banks and lenders offer private Education Loans in addition to federal Education loans. There are two types of these loans: school channel loans and direct consumer loans. The former are delivered directly to the school on behalf of a student and cover tuition, while the latter are disbursed directly to students. Students have control over the funds received through direct consumer loans, and can use the money on tuition in addition to other education related expenses.
Applying for private Education Loans is quite easy; you can just use our student loan comparison tool to search, compare, and apply for private student loans. Before you apply, though, be sure you know your loans - use our resources to figure out what you should look for in a loan, and use our Comparison Tool to find and apply for the loan that's right for you!
Q:What kinds of expenses do private education loans cover?
A:Private education loans are basically student loans that help students cover all kinds of educational loans. Sometimes federal loans do not cover the complete tuition costs. In such circumstances, most students apply for private loans. Private loans come with high interest rates but also have other advantages, as they cover expenses such as student accommodation, travelling, books, health insurance, etc.
Q:How can education loans help me?
A:Education loans are a tool that students can benefit greatly from, when used responsibly. They are a measure of financial support for students who are interested in pursuing higher education but face financial constraints. The federal government, state governments, individual institutions, and private lenders all offer education loans. Each lender and type of loan will have different terms and conditions; therefore, students need to be informed as to the sort of loan they take out.