Below you'll find a list of all posts that have been categorized as “Basics”
Student loans and personal loans might seem similar at first glance, but there are many key differences that all borrowers should understand. In some cases, a personal loan may be marketed to students making it appear to be a student loan. Borrowers who understand the differences between the two loan …
The differences between a federally-held student loan and a federal loan have never been more important. Federally held loans are eligible for programs like Public Service Forgiveness. Federally held loans are the only loans that benefit from the Covid-19 payment and interest freeze. Unfortunately, not all federal student loans are …
Capitalized interest is one of the hidden dangers of federal student loans. It is also a source of confusion for many borrowers. This confusion is a significant problem for two reasons. First, loan servicers do a horrible job preventing capitalized interest issues and explaining the consequences. Second, not understanding capitalized …
When evaluating student loan options, the interest rate is often the deciding factor. For many, the lower the rate, the better the loan. However, this simplistic method of evaluation ignores the many federal student loan benefits. In many cases, a federal loan –even one with a higher interest rate– is preferable …
There are a wide range of reasons a student might elect to take a gap year. Some want to earn a little extra money or focus on travel, while others use the time to prepare for graduate school. Covid-19 has become the latest reason why students are taking a break …
Several readers have asked how the student loan refinance rankings on this site are determined. Many lenders have also asked to have their company moved to a higher spot in the rankings. In the interest of transparency, a clear explanation of the rankings criteria is probably necessary. While there is …
As the largest lender of student loans in the United States, the federal government is responsible for tracking over a trillion dollars in student debt. The government maintains records of when the loan was issued, the type of loan that was issued, the original balance, the current balance, interest rates, …
Reviewing a financial aid package from a college can be overwhelming. Schools take tens of thousands of dollars worth of expenses and fit everything into a short document. Many families make the mistake of deferring to the Financial Aid Office’s assumptions without doing any additional investigation on their own. Not …
One of the more confusing and stressful aspects of student loan refinancing can be the process of actually getting the old loans paid off. For many borrowers, the payoff amount and loan balances do not match. Some fear that lenders will be given too much money. Others worry about the …
When it comes to student loan interest rates, there are two basic options: Option one is a fixed-rate loan, where the interest rate does not change over the life of the loan. Option two is a variable-rate loan. The advantage with variable-rate loans is that the interest rates start much …
