|
FEDERAL STUDENT LOAN FEATURES
|
PRIVATE
STUDENT LOAN FEATURES |
|
Include many protections often not available from private lenders, such
as interest rate caps. A cap means the interest will not exceed a
specified
rate. |
Offer variable interest rates that may change every
year.
|
|
Usually offer a variety of ways to handle payments should personal
circumstances make repayment difficult. |
Private lenders are not required to provide repayment options should a
personal circumstance make repayment difficult.
|
|
You don't have to start repaying your loans until you graduate or drop
out of school. |
Some private student loans require you to start making repayments
immediately after you sign the loan agreement.
|
|
Students with financial need may qualify to have the government pay
loan interest while they are in school. |
Interest accrues while you are in school and you are responsible for
paying the loan and the related interest and fees.
|
|
You don't need a credit record or a cosigner to get a federal student
loan. |
In some instances, a cosigner may be needed to obtain a student loan.
In addition, without a credit record (which most students have not
established yet), interest rates for private loans are usually higher than
federal student loans.
|
|
If you have a dispute, you can bring your case to court. |
If you have a dispute, most private loans require mandatory arbitration
rather than allowing you to file your claim in court.
|
