With student debt growing at an alarming rate, every student should have a basic knowledge of the various types of student loan available. This student loan overview will give you some basic information. The other videos and web pages within this website will also give you additional insights on each of the loans.
One of the most common misunderstandings is the amount of financing that the student can legally get in their name. If you are planning to borrow a significant amount of money for college, most of those loans will be tied to a parent or an adult. This is especially true for undergraduate degrees.
The access to student loan money is fairly easy in comparison to other loans. The reason for the easy access is it needs to be repaid. Student loan debt is normally not forgiven under bankruptcy. Due to this legal restriction, student debt can be a burden for a long time. As stated above, many parents are legally responsible for these student debts. If a parent defaults the government will garnish a portion of your social security and tax refunds.
When planning your debt structure, you need to consider the various repayment options and loan forgiveness plans. It is important that you understand the details and not the highlights.
The video on Student Loan Types will cover:
Types of Student Loans
Impact of the EFC on your loans
Legal responsibility of student loans