Are you a junior or senior in high school getting ready to apply for college? Maybe you have your top college choices all picked out, and you already started the application process. Either way, it’s never too early to start thinking about how to fund your college education. Most students will need to take out loans to pay for this huge expense.
One big question college students have is whether federal or private student loans are best. If you’re applying for student loans, read over our list of pros and cons for each, and use the information to decide which option is best for you.
The federal government offers different student loans to help pay for college. The most common federal student loans are offered through the William D. Ford Federal Direct Loan Program, more commonly known as the Direct Loan program, which includes four different kinds of loans.
There are a number of benefits to taking out federal student loans rather than private loans.
There are certainly some compelling reasons for choosing federal student loans. But you’ll also find some limitations you’ll need to plan for, including the two below.
Now that you’re a bit more familiar with federal student loans, let’s take a look at your other option –private student loans. You can secure these through a variety of lenders. Here are a few advantages of borrowing from a private institution.
Here are a couple of things to watch for when considering applying for a private student loan.
The right loan for you will depend on your individual circumstances, the field you plan to enter, your family’s financial situation, and many other variables. Be sure to examine each option in depth to determine the right choice for you and what will be most manageable to pay back after graduation.
You can also find more tips for saving and planning for college on our blog.