A student loan company is a loan given to students by either the student bank or a company that specializes in giving loans to students.
It is possible for parents of students under the age of 18 to obtain student loans with cosigners, but this is usually rare. Generally, cosigning on a student loan is not recommended, as there are no guaranteed means of repayment.
Student loans are offered through a variety of lenders, including the student’s bank or credit union, state agencies, and private companies.
Generally, all banks offer student loans. However, the fees and requirements vary from bank to bank. It is important to understand exactly what you are signing for when taking out a loan, so it is important to research the bank’s policies before you sign on.
State agencies also offer student loans. The cost of loans offered through state agencies tends to be lower than those given by private companies, but they are harder for students to get approved for. Because these are government-sponsored loans, many banks will not accept them as reasons for deferring payment.
Private companies are another option for student loans. These are companies that offer loans specifically to students. They will offer these loans at an interest rate slightly higher than that of a bank or credit union, but what you lose in interest rate, you gain in non-secured repayment plans. For example, it is very easy for private companies to accept students with low credit; banks, on the other hand, typically require good credit before they will approve a loan.
It is also possible for more than one bank or company to offer student loans. Some banks even specialize in offering student loans. These companies usually have lower interest rates, so it is often preferable for students.
When choosing a Student loan company make sure to look for a company with experience. A large student loan company will have built a fantastic reputation and can save you some serious money in reduced fees and interest rates.
