Do you have the ambition of going to college, but you don’t know how to cover the cost of college? Student loan might be the best option for you, but it is very important to know the bank that gives the best student loan in order to make the process an easy one.
Here, we will look at the banks that give the best student loans and other important information you need to know about student loans.
A student loan is money that you borrow from the federal government, the state government, or a private company to help pay for school expenses with the expectation that you will pay the money back in the future.
Student loans help students pay for college, filling financial gaps and providing essential funds to cover educational expenses. Check Student Loan Forgiveness.
According to the Institute for College Access and Success, nearly 70% of college students nationwide borrow money to help pay for school-related expenses.
But it is important to note that all student loans are not alike, and it can be confusing to figure out which types of loans best meet your needs. Keep on reading to retrieve more information in this article.
Types of Student Loans
Students have two main options when it comes to student loans: federal student loans, which are issued by the government, and private student loans, which are issued by non-government entities, as banks and other financial institutions.
1. Federal Student Loans
Student loans from the federal government offer many advantages, such as fixed interest rates. Federal student loans also offer more flexible repayment plans and access to loan forgiveness programs under certain conditions.
Typically, the amount you can borrow each year depends on your education level and status as a dependent or independent student.
Yearly loan limits can vary from $5,500-$12,500 for undergraduates. Loan limits for graduate students can reach up to $20,000.
2. Private Student Loans
Private loans usually come from banks or other private companies and often end up costing more than federal loans due to interest rates.
They can also require students to start making repayments while still in school. Most students only apply for private loans after maxing out their federal financial aid.
Moreover, private loans are often unsubsidized and may come with an annual cap, limiting the amount of aid available. Interest rates for private loans are also variable.
Your credit history, along with your cosigner’s, can affect all of these factors — especially the interest rate.
How To Pay Back Student Loan
Repayment terms on student loans vary based on the type of loan. Federal student loans are often designed to be paid off within 10 years, whereas private student loans might differ based on the lender’s terms.
Students usually won’t have to start making their federal student loan payments until six months after graduation (or if they drop below half-time status). That means, you always have the option to start making payments while you are still enrolled in school.
Many private lenders also offer the option to delay payments until after school, and some, like College Ave Student Loans, offer in-school repayment plans, too.
If you can begin making payments during school – even small ones – you will usually save money in the long run because you’ll pay less in interest charges.
Banks that Offer the Best Student Loans
Only a few national banks offer private student loans. These include:
- PNC Bank
- Education Loan Finance
- College Ave Student Loans
- SoFi
- Discover
- Citizens Bank
PNC Bank
PNC offers a fleet of private student loans in its student lending center. These include undergraduate loans, graduate and professional loans and education refinancing.
Undergraduate students enrolled in degree or certificate programs part-time are encouraged to consider the PNC Solution Loan for college expenses. This private loan helps fill the gap when other forms of financial aid do not cover all expenses.
Rates, according to the PNC website, are as low as a 5.64% variable APR and a 4.49% fixed APR. These rates also include a 0.50% discount for automated payment. \
Students who receive a PNC Solution Loan will enjoy benefits, including no application or origination fees, co-signer release options and customized payment plans.
Citizens Bank
Located in 14 states with approximately 1,200 branches, Citizens does offer undergraduate student loans. Applicants may choose student loans with competitive variable rates (starting as low as 5.10%) or fixed rates (as low as 4.99%), according to the Citizens website.
Benefits of a Citizens student loan include the opportunity to apply for a student loan with multi-year approval, flexible terms and zero application fees.
Other student loans offered by Citizens include graduate student loans, student refinance loans and parent loans.
Discover
Undergrads seeking student loan funding may consider taking out a student loan through Discover.
Rates, according to the Discover student loans homepage, start at 5.87% for variable rates and 5.49% for fixed rates. Additional benefits include the ability to customize your loan’s rate and repayment options and pay zero fees.
There is also a cash reward available for students who receive good grades. Students who receive at least 3.0 GPAs (or equivalent) qualify for one-time cash rewards on new Discover student loans.
Conclusion
With all these being said in this article, we know that you have been able to understand what student loan is all about, starting from their various types and the banks that give the best student loan.
If you have any questions on this topic, you can drop them in the comment box and we will be there to answer them.
