http://www.paymystudentloans.com/private-student-loans/
Private student loans come from banks or other private lenders in order to help the borrower pay for their education. These are different than federal student loans, and you should exhaust all of your federal student loan, scholarship, and grant options before turning to a private student loan.
1. PLUS - The 4 types
of Federal Student
Loans
Federal vs Private Student Loans
PayMyStudentLoans.com
2. PayMyStudentLoans.com
Federal Versus Private Student Loans
Federal Private
• Provided and guaranteed • The government does not
by the United States guarantee
Department of Education. • Provided by banks and
• Awarded on an as needed other financial institutions
basis. to students who qualify.
• You do not need a cosigner • A cosigner with an
or an established credit established credit history is
history. usually required.
3. PayMyStudentLoans.com
Types of Federal Loans
Direct Available for
The current
Your college No cosigner or
interest rate is 3.4
Subsidized undergraduate
students.
percent (July 2012
determines the
loan amount.
credit check is
required.
Loans – June 2013).
Direct Available for The current
Your college No cosigner or
undergraduate interest rate is 6.8
Unsubsidized and graduate percent (July 2012
determines the
loan amount.
credit check is
required.
Loans students. – June 2013).
If you do not have
Available for
Direct Plus graduate and
The interest rate is
fixed at 7.9
Your college
determines the
an established
credit history, you
Loans professional
students.
percent. loan amount. will need a
cosigner.
Federal Available to
undergraduate, Perkins loans are No cosigner or
The interest rate is
Perkins graduate and
professional
5 percent.
provided through
your school.
credit check is
required.
Loans students