Student Loan Companies and Lenders Overview

It is important for students and parents who are looking at financing methods for a college education to know there are many different funding options available through a variety of student loan companies and lenders.

Federal Student Loans

One of the largest student loan companies and lenders is actually the U.S. Government. Several different types of student loans are available through the government, including:

• Subsidized loans for students
• Unsubsidized loans for students

It is important to understand that subsidized student loans do not accrue interest until you begin to repay the loan. The lender, the federal government, will subsidize the interest during the time you are in school. Keep in mind these loans are generally based on financial need.

Unsubsidized loans begin to accrue interest at the time the loan is made. While interest is charged while you are in school, you have the option of paying only the interest while still in school.

Private Student Loan Companies and Lenders

Private student loan companies and lenders can provide additional resources. These student loan companies and lenders include banks, credit unions and savings and loan associations. Due to the fact that they are an alternative to federal student loans, these loans are also commonly known as alternative loans. When sufficient funding is not available through federal student loans, private student loan companies and lenders can help to bridge the gap. Students who have additional education expenses beyond the amounts covered by government sources of funding, or those who do not qualify for federal student loans may find private student loans a welcome resource.

Parents and students should understand that while interest rates on federal student loans are set by the government, private student loan companies and lenders determine their own terms and conditions, including interest rates. Due to this, terms, conditions and rates can vary from one lender to the next. Therefore, it's a good idea to check with several lenders before deciding on a single loan. Studentloans.info can help you get started with the process by putting you in touch with a variety of student loan companies and lenders to determine which one is right for your situation.