Private Versus Federal College Student Loans – Which is Better?
It is advised by all financial services providers that you apply for a federal college student loan before jumping straight into applying for a private loan. This does not necessarily mean that a federal student college loan is any better than a private loan, but just that is can offer you a more competitive deal in terms of interest rates. Private lenders can determine their own interest rates to a certain degree, and they are often found to be substantially higher than that of federal student college loans. Private loan interest rates are largely dependant on the borrowers credit score. Some people do not get approved for federal student college loans due to not having the financial need after being assessed. In these cases, private student college loans are the only viable option that could be applicable. Another reason why federal student college loans are more appealing is that they are federally guaranteed, and can possibly even be partially subsidized to those who are approved.
