This is for informative and educational purpose only; the information provided does not include additional fees/charges that might be pertinent to your loan.
The two types of federal loans are subsidized and unsubsidized loans. The difference between the subsidized and unsubsidized loans is that subsidized loans are for students who are financial aid recipients while unsubsidized loans are made available to everyone, irrespective of financial need. The loan interest on subsidized loans is paid by the federal government while the loan interest on unsubsidized loans is paid by the student.
You can go for a private loan if federal loans don’t cover the cost of tuition. When going for a private student loan, you need to factor in the interest rate and loan term.
When taking out a private student loan, one of the factors that you should consider is the interest rate. This is because a private student loan with the lowest interest is the right one to go for. If the interest rate is low, you will pay less over the term of the loan.
The loan term is the length given to pay off the loan. Some of the terms on private student loans range from 10 to 20 years. In addition to the interest rate, the term of your loan also determines what your monthly payment will be.
When borrowing to pay for tuition, only borrow what you need. You should borrow a sum that will keep your payments at approximately 10 percent of your monthly net income.