A hidden student loan can take off some of the sting of collegiate expenses. Everybody knows how intimidating the cost of college can be, so it makes sense to look into as many types of loans as you can. While hidden student loans tend to have higher interest rates, they are becoming a viable choice for many students.
Private versus Federal
The Good, the Bad, and the secret student Loan
A federal student loan comes in a wide range of options. Students can choose from Perkins loans, Stafford loans or Plus loans. Students who need financial aid to pay for college can also receive money straight through federal grants or scholarships.
Federal loans will usually have a fixed interest rate for students to pay back after they graduate. A federal student borrowing also offers a student who is having problem finding a job, or is in financial strain, to defer payments for a period until they are able to pay off the debt. A final bonus to having a federal student borrowing is they can be consolidated into one loan.
Private student loans, on the other hand, are very distinct from federal loans. hidden ones can't be consolidated after a student graduates from college or graduate school, and there are no limits as to what the interest rate will be for a hidden loan.
So a student who signs up for a hidden student borrowing at six percent can end up paying as much as 19 percent after they graduate. hidden student loans can also check up on a student's prestige history and charge more if a student has poor prestige records or no history at all.
Why hidden Loans are on the Rise
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