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Subject
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Federal Student Loans
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Federal Parent Loans
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Private Student Loans*
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When
payments become due
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Payments aren’t due until after you graduate, leave school, or change your enrollment status to less than half-time. |
You (the parent) can choose to put off payments until the student you borrowed for graduates, leaves school, or changes enrollment status to less than half-time.
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Many private student loans require payments while you are still in school, but some do allow you to defer (put off) payments while in school.
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Interest
rates
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Private student loans can have variable or fixed interest rates, which may be higher or lower than the rates on federal loans depending on your circumstances.
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Subsidies
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If you have financial need, you may qualify for a loan for which the government pays the interest while you’re in school on at least a half-time basis and during certain other periods. This type of loan is called a " subsidized loan." |
These loans are not subsidized; therefore, you will be responsible for all the interest on your loans.
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Private student loans are often not subsidized. In the case of an unsubsidized loan, you will be responsible for all the interest on your loan.
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Credit
check
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Private student loans often require an established credit record or a cosigner.
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Tax benefits
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Interest may be tax deductible.
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Interest may be tax deductible.
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Interest may be tax deductible.
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Consolidation
& refinancing
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Private student loans cannot be consolidated into a Direct Consolidation Loan but may be refinanced.
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Postponement options
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You should check with your lender to find out about options for postponing or lowering your loan payments.
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Repayment plans
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You should check with your lender to find out about your repayment options.
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Prepayment penalties
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There is no prepayment penalty fee.
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There is no prepayment penalty fee.
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You need to make sure there are no prepayment penalty fees.
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Loan
forgiveness
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Although many private lenders do not offer loan forgiveness programs, some student loans from state agencies can be forgiven in certain circumstances.
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Where to get help
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