Federal education loans are less expensive and offer better terms than private student loans, so you should exhaust your eligibility for federal student loans before resorting to private student loans by filling out the FAFSA (Free Application for Federal Student Aid) each year. The federal education loans offer fixed interest rates that are lower than the variable rates offered by most private student loans. Federal education loans also offer better repayment and forgiveness options.
There are several options for students who wish to borrow money other than, or in addition to, federal loans. The alternative loan program is intended to provide students and their families an additional source of funding to assist in covering the costs of a college education. Students can borrow up to the cost of attendance less any other financial aid already received. The loan is in the student's name, but in most cases a credit-worthy cosigner is required.
There are hundreds of alternative loans available to students. We have selected the ones that we are most familiar with. If you go to FASTChoice you will be able to compare alternative loans and select the one that best meets your needs. Click here to compare alternative loan information.
