An education loan is a form of financial aid that must be repaid, with interest. When students receive a student loan, it is borrowing money to attend college. It is important to understand repayment options to successfully repay student loans.
Education loans come in three major categories:
- Federal Loans: student loans (Direct loans) parent loans (PLUS loans)
- Private Loans: private student loans
- Consolidation Loans: consolidation loan
Understanding Loan Types
- Federal student loans and federal parent loans are funded by the federal government.
- Private student loans are non-federal loans, made by a lender such as a bank, credit union, state agency, or a school.
- Consolidation Loans are a combination of several student or parent loans into one bigger loan from a single lender.
Comparing your student loan options is the best way to save money on the cost of borrowing. Fastweb and Student Loan Hero by Lending Tree have reviewed the top private student loan lenders to help you make an informed decision.
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.
Citizens
Citizens offers loan options for undergrad, grad students and parents with competitive rates, flexible terms and interest rate discounts.
Multi-year approval option available for qualified applicants. Multi-Year approval provides an easy way to secure funding for additional years in school without completing a full application and impacting your credit score each year.
https://www.citizensbank.com/promo/studentloan.aspx
Loan
Choose between our student or parent loan options with competitive interest rates and flexible payment terms.
Limits
Loans from $1,000 to $295,000 depending on education level.
Rates
Variable rates as low as 1.22% APR* and fixed rates as low as 4.25% APR* including all available discounts.
Fees and Terms
No application or origination fees. 5, 10, or 15 year options available. Rate and Repayment Examples.
Student Loan Providers
Credible
Credible offers borrowers a “kayak-style” experience while shopping for student loans. Similar to the “Common App,” users (and co-signers) complete a single, brief form and receive personalized offers from multiple lenders. The process is free and does not impact a user’s credit score to compare offers.
Credible’s marketplace includes:
- Ascent
- Citizens Bank
- CollegeAve
- Discover Student Loans
- EDvestinU
- INvested
- Mefa
- Sallie Mae
- SunTrust
Loan
Choose between fixed and variable rate loans, as well as deferred and interest-only repayment options for your school loans.
Graduate and undergraduate loans for almost every degree type.
Repayment options range from immediate full repayment (principal and interest payments immediately after the loan is fully disbursed), interest only (interest-only payments while you are in school, and start making principal and interest payments after you leave school), full deferral while in school, flat payment while in-school, graduated repayment (payments increase over time).
Limits
COA-Aid (annual limit)
Borrow up to $170,000 through Credible’s marketplace.
Annual max (100% of school certified costs minus other financial aid received).
Lifetime aggregate loan amount 200K.
Rates
Fixed rates as low as 3.34% APR (with autopay)* and variable rates as low as 1.04% APR (with autopay)*. Access special discounts from some lenders.
*Read rates and terms at Credible.com.
Fees and Terms
No fees.
5, 7, 8, 10, 12, 15 and 20 year terms available.
