Understanding student loan types
Sallie Mae, the nation's leader in education finance, offers just the right combination of student loan options to help you pay for school — all in one place.
Federal student loans are the largest source of education loans. You and your family can get these loans through private financial institutions such as Sallie Mae.
Federal student loans have more favorable terms than private loans. These loans are guaranteed by the government, and the government sets their low interest rate. Nearly all students are eligible to receive federal student loan money (regardless of credit score or other financial issues), and they also get a grace period after school when no payments are due.
So, get all the federal loans you can before looking into private student loans.
For graduate and professional students, the Graduate PLUS loan is the best supplement to Stafford loans and should be pursued before a private loan.
Private student loans provide additional funding after a borrower has maximized his or her federal loan eligibility. You can get them from your school or from private financial institutions.
Depending on the lender, private loan (alternative loan) terms can vary considerably based on your credit history.
International student loans provide financial solutions for the growing population of students pursuing college and university degrees outside their home country.