A student loan is designed to help students pay for their tuition, books and living expenses. May be different from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is in training. It is also distinguished by many strict laws and the renegotiation failure.
Education loan is a form of financial aid that must be repaid with interest. (Scholarships, on the other hand, do not have to be repaid.)
Student loans fall into three major categories: student loans (eg, Stafford and Perkins loans), parent loans (eg, PLUS loans) and private student loans (also called alternative student loans). A fourth type of student loan consolidation loan allows the borrower to consolidate all your loans into one loan for simplified payment. A recent innovation is student loans peer-to-peer. More than $ 100 billion in federal student loans and $ 10 billion in private student loans originated each year.
As a student loan borrower, you know that one of the keys to good management of the loans is to understand their obligations and how to manage these loans. This includes knowing that there are changes that may affect the repayment student loans. At present, some borrowers are experiencing changes in their loan manager and, where appropriate, these loans are being processed.
If you are one of these borrowers may have been contacted by a new director – an organization other than the U.S. Department of Education (Department) and you can ask a few questions.