Federal student loans are backed by U.S. Government. They are not based on credit histories of borrowers, since most people applying for and receiving them come right out of high school and do not have a credit history yet. They feature lower interest rates that result in smaller monthly payments. While government student loans may not be sufficient to cover the entire cost of education alone, they offer a great money-saving opportunity to fund college education, since they currently have an interest rate cap of 8.25%, with factual rates way lower than that.
Student Loan Consolidation Is Also Available With Help of Federal Government
U.S. Government, besides lending money to students, also offers loan consolidation services. Many students find it overwhelming to service the amount of debt they have accumulated through school years, especially without securing a stable employment in their field of education. While it may take some time … Read More