Refinancing Student Loan and Need Based Loans

Loans constitute a large portion of the financial aid given to college students year after year. College loans can be the federal type or the private ones, just like student loan refinancing can either be for federal or private loans (Remember, you cannot mix federal with private loans when applying for college debt consolidation). Federal loans are those provided or supervised by government agencies and require students to have financial need, while private student loans are given by banks and other private financial institutions. Even private individual money lenders can give out private loans to student borrowers.

Of course, if the circumstances require that refinancing student loan is needed because of accumulated multiple loans, federal loans are subjected to federal student loan refinancing thru college debt consolidation, while the private loans are combined for a separate refinancing student loan program.

Federal student loans as well as private debts can be either need-based or non need based loans. The need-based type of loans is usually with fixed interests with low rates.

Another feature, or shall we call incentive, of need based loans is that the principal can be paid after the student finish or graduate from college. If you are applying for a loan based of financial needs, you may apply for Perkins Loans.

We will check on the non-need based loan next time.

Written by admin on November 27th, 2006 with no comments.
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