Credit cards Business credit cards Auto Loans Home Loans Auto insurance



Student loans | Refinance student loans, consolidation

General concept of student lending in the United States

Most American families cannot afford to pay for their child’s education, not only at a prestigious university, but also at a medium-sized college. In such cases, student lending comes to the rescue. This is a very common practice: it is profitable to take educational loans, there are solid delays and convenient repayment schemes.

The most popular student loan systems in the USA are:

student loan - student loan (issued directly to the student),

parent loan - parental loan (issued to the student’s parents),

private loan - private loan.


The Loan Consolidation system allows you to combine several loans, which significantly improves credit conditions and increases the repayment period compared to standard programs.



The first two programs are funded by the US government and are available exclusively to citizens and residents of this country. A foreigner can also use private lending, but it is extremely difficult to get a student loan on his own. The main feature of federal student loans is a reduced interest rate and the absence of the need to provide collateral, since it is assumed that the borrower has almost no own funds.

The main student loan is the so-called “Stafford loan”. It can exist in two basic versions:

Federal Family Education Loan Program (FFELP). In this case, non-state financial institutions act as creditors, but the US government is the guarantor of the refund;

Federal Direct Student Loan Program (FDSLP). In this case, the Federal Government is already acting as a direct creditor (through state financial institutions), and not simply guarantees the return of borrowed funds.

Stafford loans are subsidiary and non-subsidiary. Interest on subsidiary loans is paid by the US government, for non-subsidiary ones - directly by the borrower. Unconfirmed loans are available to almost all students (citizens and residents of the United States), for obtaining subsidiary loans requires proof of a difficult financial situation. In any case, the student can count on a deferment of payment (in some cases, until graduation).

Parents-dependent students can count on loans in the amount of:

2625 USD - the first year of study;

3500 USD - the second year of study;

5500 USD - each subsequent course.


Working students can get additional credits in the amount of $ 4000-5000 per year (depending on the course). The interest rate on Stafford loans is variable, but, regardless of the policy of the financial institution, it cannot exceed 8.25percent's .



Students who can prove that they are in a difficult financial situation have the opportunity to receive Perkins preferential credit. It is subsidiary (interest paid by the state). Usually, students are given a delay of the first payment of 9 months (sometimes more). The loan is issued at 5percent's per annum for a period of 10 years. There is a possibility of early repayment and cancellation of the loan.

The size of the loan is set by the financial aid service of a particular educational institution. For most colleges and universities, a limit of $ 3000 per year has been fixed ($ 5000 for postgraduate studies). For the entire course, a student can get a Perkins loan for $ 15,000, a graduate student - for $ 30,000.

Student loans

Parental loan

Parents of students can take the federal loan for the education of the child. Unlike student loans, parent loans can cover full tuition fees. They are issued by both private and public financial institutions at no more than 9percent's per annum for a period of 10 years. It is clear that this loan is also intended only for citizens and residents of the United States.

Private student loans

Private lending is available to all students regardless of nationality: other criteria are required. In particular, Private International Student Loan is issued to foreign students.


Sun, 09 Dec 2018 16:35 GMTActor Edward Norton is trying to change how the TV industry measures viewershipSun, 09 Dec 2018 15:58 GMTA wintry storm hammering the Southeast grounds more than 1,400 flights, as airlines waive change feesSun, 09 Dec 2018 15:13 GMTGoogle has huge plans for its home city — here's a look at the massive development Sat, 08 Dec 2018 19:00 GMTFord and VW considering an expansive alliance likely to echo across the global auto industrySat, 08 Dec 2018 00:41 GMTCramer Remix: The trade war isn't about trade—it's about global dominationFri, 07 Dec 2018 23:46 GMTCramer's lightning round: There are better drug stocks to own than GlaxoSmithKlineFri, 07 Dec 2018 23:28 GMTCramer: Buy shares in cloud plays Salesforce, Splunk, VMware, Workday on downturnsFri, 07 Dec 2018 23:13 GMTIf the Fed doesn't raise rates this month, the market could panic, Cramer saysFri, 07 Dec 2018 23:13 GMTCramer's game plan: Between the Fed, China and Apple, get ready for more volatilityFri, 07 Dec 2018 21:50 GMTCitigroup needs to slash bonuses, do 'whatever it takes' to cut costs: Wells Fargo analystFri, 07 Dec 2018 21:44 GMTT. Rowe Price's Ellenbogen says public market woes aren't yet punishing tech start-upsFri, 07 Dec 2018 21:22 GMTMexican auto exports to US keep surging as Americans clamor for trucks and SUVsFri, 07 Dec 2018 21:13 GMTApple buys Platoon, a start-up that helps indie musicians get discoveredFri, 07 Dec 2018 21:03 GMTApple and Alphabet erase their gains for the yearFri, 07 Dec 2018 20:40 GMTThe ultimate holiday tipping guide: How much to giveFri, 07 Dec 2018 19:49 GMTUS mall owners have been slow to change for years. But now they're trying to embrace itFri, 07 Dec 2018 18:46 GMTChina launches lunar rover in historic mission to the dark side of the moonFri, 07 Dec 2018 18:35 GMTTop VC deals: Walmart buys Art.com; Steph Curry backs travel AI; Salesforce launches Japan fundFri, 07 Dec 2018 18:04 GMTCoca-Cola's chairman thinks we should change how we talk about soda salesFri, 07 Dec 2018 17:53 GMTDelta Air Lines starts offering bare-bones basic economy award tickets to frequent flyersFri, 07 Dec 2018 17:29 GMTCoca-Cola chairman: 'More unknowns, more volatility' are making running a global business tougherFri, 07 Dec 2018 17:25 GMTGE makes it official, lowers dividend to a pennyFri, 07 Dec 2018 16:02 GMTSenator slams Google's censored search engine work in China Fri, 07 Dec 2018 15:34 GMTAltria shutters its e-cigarette brands as it eyes Juul, awaits iQOS decisionFri, 07 Dec 2018 15:30 GMTHere's the one photo the Walmart CEO keeps on his phone to stoke 'healthy paranoia' Fri, 07 Dec 2018 15:27 GMTThe 10 most-liked companies in Germany to work for in 2019, according to GlassdoorFri, 07 Dec 2018 15:18 GMTMicrosoft's cloud business could be bigger than Windows by 2021, KeyBanc saysFri, 07 Dec 2018 13:32 GMTAmazon will start penalizing sellers who ship unsafe packages to its warehouses as violations mountFri, 07 Dec 2018 13:14 GMTMorgan Stanley joins the chorus of Apple price target cuts: 'China smartphone market to blame'Fri, 07 Dec 2018 13:09 GMTBond markets are flashing red and an oil plunge could only make things worse