- Federal student loans: These are federally sponsored loans, which means the government is responsible for guaranteeing them. This makes them a good option for people who don’t have good credit or who plan to study in a country with high tuition rates. They also tend to have lower interest rates than private student loans, which can be helpful if you’re planning to use your loan for an extended period.
- Confidential understudy loans: Confidential understudy loans are given by banks, credit associations, and other financial institutions. They tend to have higher interest rates and shorter terms than federal student loans. They’re also more likely to be available to people with better credit ratings.
- Perkins loans: Perkins Loans are designed for students who don’t qualify for traditional federal or private student loans but still want to attend college. They’re administered by the states rather than the federal government, so they have different interest rate structures and repayment schedules.
What to do assuming you are battling with an educational loan obligation
If you are combating educational loan obligation, there are two or three things you can do it to get help.
- Consolidate your debts into one loan: This will lower your interest rate and increase your monthly payment.
- Consider refinancing your student loans: if you can afford to do so, This will assist you with paying off your debt more quickly and reduce the interest you pay.
- Try to get a deferment or forbearance on your loans: This option allow you to temporarily stop making payments while trying to find a new job or resolve financial troubles.