Federal Student Loans vs. Private Loans

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As college tuition costs continue to rise, many students find themselves faced with student loan debt. According to collegedata.com, a current moderate estimate of a college student’s annual tuition and fees is around $24,000 for public institutions. It is a well-known fact that most students require financial aid and loans to help pay for these costs. What many students don’t consider are the two different kinds of student loans that they have access to.

Federal Student Loans

Federal Student Loans are loans that come from the United States government. These loans have low interest rates, and students are not required to begin repaying the borrowed amount until after they have left school or have dropped down to less than half-time status. These loans have flexible repayment options and allow for paused payments (in the form of deferments) if students face economic hardships or decide to go back to school.

Private Loans

Many students need more than their Federal Student Loans provide, so they opt to take additional Private Loans to pay for school. These Private Loans are different from Federal Student Loans in the following ways: higher interest rates, earlier repayment, and less lenient repayment options. Additionally, Private Loans may require the borrower to have a co-signer. In general, these loans are costlier over time due to their higher interest rates.

Private Loan Solutions

No matter which type of student loans you have, the Suber Group wants to help you obtain student loan forgiveness. While the Suber Group has always specialized in student loan debt forgiveness, in the past, their primary focus has been on the forgiveness and consolidation of Federal Student Loans. Beginning in January 2017, the Suber Group will begin to offer Private Loan Solutions. These Private Loan Solutions will allow the Suber Group to provide groundbreaking results for students who have Federal Student Loans, as well as Private Loans.