Dec
11
Student Loans 357 – Types of Loans
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From Student Loans 357, college loans are seen as a “good” debt, because an advanced education is considered a prudent long-term investment. In 2005, the typical full-time individual with a 4-year college degree earned 
sixty-two percent more than an employee with only a high school diploma. Many students can’t afford to attend university without borrowing money.
But it’s essential to understand that not all student loans are created equal. Federally guaranteed student loans, known as Stafford loans, have fixed rates, now 6.8%, and flexible repayment terms. Any full-time university student, regardless of family income, can take out a Stafford loan.
Private college loans, which are often offered by the same lenders that give federal loans, are more costly. Interest rates are variable, so there’s no limit on how high they can go. And repayment terms aren’t as flexible as they are for federal loans.