An education can be a very worthwhile investment in a student’s future and a very wise choice. Saving for college is obviously preferable to taking out student loans. However, for various reasons, that is not always possible, and many students must take out student loans in order to fill the gap between the cost of attending college and the financial aid they receive.
If you must take out student loans, it’s important to understand your options so that you can borrow in the most appropriate and responsible manner possible. Doing your homework on student loans can save you thousands of dollars in interest and fees over the life of the loan. Most students take out federal and/or private student loans.
Private student loans are issued by banks and other private entities and are used to pay for tuition, room & board, and other types of expenses. Federal student loans are generally issued by federal government.
For most students, it makes sense to maximize federal student loan options before taking out private student loans. However, students (and/or cosigners) with excellent credit are sometimes offered fairly attractive private student loans that should be carefully compared to federal loan options before a final decision is made.
SimpleTuition is a site where you can easily research and compare private student loans to find the best loan possible for you. You simply enter the amount you want to borrow and some basic information about yourself and then the site displays a customized list of options for you.
Make sure you carefully consider the interest rate, fees, and terms of any loan you are considering.
For additional student loan information, see our Student Loan articles in the Personal Finance section of the site.