student loans consolidation

For students who already have an outstanding federal student loan with the U.S. government but still unable to make ends meet, they might consider another alternative - the Private Student Loans.

Advocates of private loans claim that this student lending scheme combine the best elements of government student loans in one: the amount limit, in general, are relatively higher than federal loans, while there still is a grace period of mostly six months during which the student does not have to start paying back his loan right after graduation.

Such a grace period is not included in a federal parent's loan, which has a higher limit than a federal student loan. Critics of private student loans, on the other hand point out that its high interest rates, multiple fees, and lack of borrower protection is not very likable.

Compared to federal loans, which has lower and fixed interest rates, private student loans have variable interest rates. Consumers should keep in mind that the total sum of a loan involves additional fees. While these fees would increase the total cost of money borrowed, it would also reduce the money available for education purposes.