Choose Student Loans Just Like Other Loans

Make no mistake about it, student loans are debt just like mortgages and car loans. Even though most lenders will allow you to postpone payments while you're in college, you will have to pay those student loans back after you graduate.

There are two basic types of student loans - federal student loans and private student loans. In a nutshell, federal student loans are guaranteed by the federal government, there are limits on the amount you can borrow, but also limits on the interest rate that can be charged. Private student loans are offered by banks and other organizations, often have credit and income restrictions, and have no cap on the interest rate that can be charged.

The private student loan industry is currently under investigation for unethical practices like paying schools to get on their preferred list. These kinds of practices are misleading to students who trust financial aid offices to genuinely assist in making decisions about financing their college education.

About Banking/Loans has more information on student loans:

• Student Loans 101
• How Deferments Work

From About Business Majors:

• Borrow As Little As Possible
• What Type of Financial Aid Is Available