Federal Student Loans VS Private Loans?

Paying for College
1

<p>I know that there are various types of federal loans, but I would like to know more about the unsubsidized one, seeing as that is the one I would probably qualify for. How do loans usually work? Which type of loan is better, in general, federal or private? Why? If you have one, which one do you have an why? There's alot of misleading information on the web, because websites ending in .gov usually glamorize federal loans and only have negative things to say about private loans, and vice versa, so I thaught it would be best to get info from real people.</p>

2

<p>Unless you’re an adult with established credit who’s returning to school, the difference is irrelevant. As a graduating high school student, you won’t qualify for private loans without a cosigner.</p>

<p>If you’re an adult with established credit, then do the research yourself - see what kinds of interest rates banks would be willing to give you, and compare that to the new federal student loan rates. See here:</p>

<p><a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/1541028-new-direct-loan-interest-rates-signed-into-law.html[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/1541028-new-direct-loan-interest-rates-signed-into-law.html&lt;/a&gt;&lt;/p&gt;

3

<p>I recommend federal loans to students, because the repayment terms are flexible.</p>

4

<p>

I think the Federal student loans are better. See [Student</a> loans – public or private? - CBS News](<a href=“http://www.cbsnews.com/8301-505144_162-57581785/student-loans-public-or-private/]Student”>http://www.cbsnews.com/8301-505144_162-57581785/student-loans-public-or-private/)</p>

<p>

My kids have Federal student loans as they didn’t qualify for private loans with decent interest rate by themselves. As of 2012, “real people” have ~$964 billion in Federal student loans but only $150 billion in private student loans. Do you think more people would borrow from Uncle Sam if the private loans are better? See [Student</a> Loan Debt Statistics - American Student Assistance](<a href=“http://www.asa.org/policy/resources/stats/]Student”>http://www.asa.org/policy/resources/stats/)</p>

<p>Please note these two websites do not end in .gov</p>