Mortgages | Car Loans | Personal Loans | Debt Consolidation | Credit Reports | Credit Cards
Taxes | Managing Money | Credit Help | Checking Accounts





Information:
-Business Financing Info
-General Loan Advice
-Personal Loan Information


Mortgages
Auto Loans
Debt Consolidation
Credit Reports
Credit Cards

Home
 -Taxes
 -Managing Money
 -Credit Help
 -Checking Accounts

 



  


 


STUDENT LOANS
The concept of a loan is pretty straightforward: first you borrow money, and then you repay it.

 

There are several types of student loans: federal, state and private.

Before you borrow, it's important to understand all the terms associated with a loan:

Principal: The concept of a loan is pretty straightforward: first you borrow money and then you repay it. The original amount you borrow is known as the "principal" of the loan. But the amount you must repay is more than the original principal that you borrow because the lender charges you for the use of the money.

Interest: The additional charge on your loan is known as interest. Interest accrues on the principal balance of your loan. In addition, lenders may charge fees for the use of the money.

Fees: Lenders often charge fees when you borrow money. For comprehensive information on fees, visit Understanding Fees.nw

Cosigner: A person who agrees to be jointly responsible for repaying a loan along with the borrower. A creditworthy cosigner often enables a borrower lacking sufficient credit history to qualify for a loan. The addition of a cosigner on a loan may result in better loan terms (e.g., lower interest rate or lower fees). The cosigner is equally responsible for the debt as long as it is outstanding, unless he or she is formally released from the obligation during repayment. A cosigner is not required for a federal loans, but is usually required for other types.

When comparing loans, compare them based on their total cost: principal plus interest and fees.


 

 

 

 

 

Home | Common Questions | Contact Us | Site Map

General Loan Advice | Business Financing Info
Personal Loan Information
 

1998 Star Loan Services Inc.. All Rights Reserved. Privacy