Fox Business posted an article that talked about how, as far as private loans are concerned, students are indebted with over $150 million. While this is a surprising piece of information, what's just as shocking is that there is little awareness as to the differences between federal and private loans. How exactly can these options be broken up, you may wonder, in order to make awareness greater? Bobby Jain may be able to tell you about these bits and pieces of information.
According to the report on Fox Business, students who have federal loans - provided they spend at least half of their time in school - do not have to make payments. This is different for those with private loans, since a good number of providers require individuals to pay off what they owe immediately. Details are crucial, to say the least, and Bobby Jain will tell you to look over everything that a provider entails. Guidelines will vary and awareness is stressed by various financial authorities, Jain included.
In order to lessen the financial burden on yourself, it is possible that you will look to loan forgiveness programs. Individuals with certain jobs, those in the medical and educational fields included, will be eligible and the benefits are tremendous. With that said, Bobby Jain will tell you that federal loans, more so than private options, are accepted. Very rarely are private loans covered by loan forgiveness, which might be a deal-breaker for those who would like to enroll in said programs.
Another factor to keep in mind, as far as student loans are concerned, is that federal loans have a fixed interest rate. What this means is that you are stuck paying that particular amount over the course of time, regardless of how rates change. This is not the same with private loans, as the report detailed, since they can change. If you believe that these rates stand the chance of increasing, as opposed to decreasing, it would be in your best interest to look at your options carefully.
If you are someone who wants more in the way of freedom, it is likely that you will look to private loans first and understandably so. My argument, though, is that the level of risk tied to private options are nowhere near worth the rewards they may possess. Are federal loans costly? I believe that this goes without saying. However, seeing as how their fixed rates are able to be transitioned into student loan forgiveness programs and are more solid overall, federal loans are more worthwhile.
According to the report on Fox Business, students who have federal loans - provided they spend at least half of their time in school - do not have to make payments. This is different for those with private loans, since a good number of providers require individuals to pay off what they owe immediately. Details are crucial, to say the least, and Bobby Jain will tell you to look over everything that a provider entails. Guidelines will vary and awareness is stressed by various financial authorities, Jain included.
In order to lessen the financial burden on yourself, it is possible that you will look to loan forgiveness programs. Individuals with certain jobs, those in the medical and educational fields included, will be eligible and the benefits are tremendous. With that said, Bobby Jain will tell you that federal loans, more so than private options, are accepted. Very rarely are private loans covered by loan forgiveness, which might be a deal-breaker for those who would like to enroll in said programs.
Another factor to keep in mind, as far as student loans are concerned, is that federal loans have a fixed interest rate. What this means is that you are stuck paying that particular amount over the course of time, regardless of how rates change. This is not the same with private loans, as the report detailed, since they can change. If you believe that these rates stand the chance of increasing, as opposed to decreasing, it would be in your best interest to look at your options carefully.
If you are someone who wants more in the way of freedom, it is likely that you will look to private loans first and understandably so. My argument, though, is that the level of risk tied to private options are nowhere near worth the rewards they may possess. Are federal loans costly? I believe that this goes without saying. However, seeing as how their fixed rates are able to be transitioned into student loan forgiveness programs and are more solid overall, federal loans are more worthwhile.
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