Student Loans

An education loan is a form of financial aid that must be repaid, with interest.

Education loans come in three major categories:

1. student loans (e.g., Stafford and Perkins loans),

2. parent loans (e.g., PLUS loans) and

3. private student loans (also called alternative student loans).

Fourth type of education loan, the consolidation loan, allows the borrower to lump all of their loans into one loan for simplified payment.

Federal law sets the maximum interest rates and fees that lenders may charge for federally-guaranteed loans. Nothing prevents a lender from charging lower fees. Many lenders offer a variety of student loan discounts to attract borrowers.

Grants, scholarships, work-study and other forms of gift aid just do not cover the full cost of a college education. Many students find that they must supplement their savings with government and private loans.
The Federal education loan programs offer lower interest rates and more flexible repayment plans than most consumer loans, making them an attractive way to finance your education. You can also deduct up to $2,500 in student loan interest even if you don't itemize deductions on your income tax return.
Many student loan providers offer low cost government and private loans with consistently high quality servicing and flexible repayment terms.