Cost of education is an important thing. No wonder why a lot of people think much about college or university that they attend and the cost becomes one of the consideration. Now, we are able to enter which university or college that we want without having too much thinking about cost because of the existence of student loan.
Nelnet is one of the biggest student loan servicing companies which provide innovative educational services in loan servicing, education planning, payment processing, and asset management. These products and services can help students and families plan, prepare and also pay for their education while making the administrative and financial processes more efficient for schools and financial organizations. You have to know that each of their business segments serves different customers from students and parents to K-12 schools or colleges, to lenders and government.
Now, they help more than 5 million borrowers with their student loans, administer tuition payment plans for almost 5,500 K-12 schools and colleges and universities and process 6 million student inquiries about colleges annually. In Nelnet, there are two types of Student Loans including Federal Student Loans and Private Student Loans. Federal Student Loans are issued directly by federal government, but private loans are typically made by private banks, stage agencies, credit unions or other financial institutions. Here, we have brief description about the difference between both types of Student Loans.
Federal Student Loans
Federal student loans are able to help fill in the gap for education-related expenses that scholarships, grants, and work-study do not cover. Federal student loans require repayment with interest. All federal student loans funded after June 2010 are funded through the Federal Direct Loan Program that are owned by the Department of Education. Federal government set the terms, conditions, and interest rates. Prior to June, loans were funded through the Federal Family Education Loan Program or FFELP. Under this program, loans were originated by a company like lender, bank, or non-profit organization and many are still owned by those institutions or the Department of Education. Now, there are some different types of federal student loans which are available, depending on need and eligibility requirements including Perkins, Stafford, GradPLUS, PLUS, and Federal Student Loan Consolidation.
Private Student Loans
These loans can help bridge the gap between the actual cost of your education and federal student aid that you get. Credit unions, banks, and other types of lenders all issue private student loans, and do not require completion of the FASFA. Loan limits, interest rates, terms and conditions are set by the lender not by the federal government. The ability to qualify for a loan, the amount that you will borrow, and the terms and conditions associated rely on some different factors which are able to include your credit history whether or not you have a co-borrower, your co-borrower’s credit history and your option of school or course of study. Some types of private student loans which are available in Nelnet are Undergraduate, Graduate and Professional and Consolidation.