There are 2 major types of school loans available
to college students:

1) Federal student loans
2) Private loans

Federal student loans…
- The US Department of Education’s Federal Student Aid
programs administer Federally funded loans.
These federal programs disburse about $60 billion a year
in loans, work-study support and grants.

Stafford loans are the most common form of federal loans
for college students.

Private loans…
- Private loans are administered by standard lending institutions
such as banks. The most common private student loans are the

Sallie Mae Signature student loans.

The lenders are basically providing unsecured (or in some cases secured)
loans for students, and will often charge higher interest rates
than the federal loans.

Federal student loans are usually the easiest to get student loan
debt consolidation services for.

It is important to remember that when it comes time to consolidate
your student loans, don’t mix the two types together.

You should always consolidate your federal loans first,
then separately consolidate your private loans.

This entry was posted on Sunday, December 3rd, 2006 at 12:23 am and is filed under Debt Consolidation, Student Loan Debt Consolidation. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.