Why not just get a loan from my credit union, pay my school with it? Is it all about interest rates?
2006-12-12 15:19:20 · 8 answers · asked by Tyrone 2 in Education & Reference ➔ Financial Aid
The interest rates are typically lower than what you could get from your credit union or bank on an unsecured loan. Plus, the government subsidizes the loan, that is to say, they pay the interest on the monies borrowed while you are still in school. You don't have to pay it back until 6 months after you graduate or quit school. If you borrow from a bank or credit union directly, the payments start as soon as the bank can mail you a payment booklet!
I am not sure if it's still deductible, but student loan interest was tax deductible.
2006-12-12 15:23:42 · answer #1 · answered by OK yeah well whatever 4 · 0⤊ 0⤋
you can get a federal student loan from a private bank (i.e credit union) and from the government. However, different schools choose which bank they will associated with. Outside of federal student loans that are dictated by the federal interest rate, there are also private loans that are dictated by the lenders and the interest will start accruing to the principle once the loan has been disbursed.
2006-12-13 06:04:34 · answer #2 · answered by sunshine23511 5 · 0⤊ 0⤋
a loan is a loan. you are still going to owe the money. the term student loan refers mostly to the fact that you won't have to payback until you graduate or lose you student status. a walk into the bank loan you will have to start paying back immediately. be careful though to read the details on the student loan, they may still accrue interest while you are not paying.
2006-12-12 15:24:36 · answer #3 · answered by dmol75 2 · 0⤊ 0⤋
About 5%.
2006-12-12 15:32:59 · answer #4 · answered by Neil S 4 · 0⤊ 0⤋
student loans don't have to be paid back until you are out of school. That's the main difference I know of. They will also give you a longer time to pay it back I think.
2006-12-12 15:24:15 · answer #5 · answered by Heron By The Sea 7 · 0⤊ 0⤋
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2016-11-30 12:33:17 · answer #6 · answered by binford 4 · 0⤊ 0⤋
GREAT DIFFERENCE
STudent LOan = no interest till you are done studying (usually) and low payments
NORmal Loan = high interest and high payments
2006-12-12 18:53:40 · answer #7 · answered by Michelle 1 · 0⤊ 0⤋
School loans offer deferment with low interest
2006-12-12 15:27:20 · answer #8 · answered by craptastic 4 · 0⤊ 0⤋