A majority of students applies for federal loans. However, there has been an increase in the number of students applying for bank student loans. The federal government determines the fixed interest rates of the federal student loans, while the lender determines bank student loan rates. The lender determines the fee to be charged on the principal amount, and this is based on the credit worthiness. Students who are apply for Stafford and Perkins loans to require credit worthiness but those applying for the PLUS loan require no previous adverse credit. Considering the pros and cons of each option, it becomes challenging to decide whether students should apply for the federal student loans or the bank student loans.
There have been price wars about the federal loans and bank loans for students as reported in the media in recent times (Andriotis 1). One may argue that the bank loans for students are actually cheaper than those being offered by the federal government. A few years back students preferred to have loans from the federal government because the rates were subsidized. This means that in the case of a rise in the interest of the federal loan, the students’ rates were not affected. The students were allowed to pay the amount that was agreed. Many students preferred federal student loans because they are easy to qualify for compared to banks (Clark 1). The bar set for by the federal government understands the need of students to have the money to pay for education. Banks on the other hand need assurance they will get their money back. This means that to access money from a bank the qualifications are quite high. The credit history of the student should be clean. The students should also have a repayment ability convincing enough to the bank before accessing a bank loan. This means the students should have a source of income, which is highly unlikely in most cases. The bank will require financial information on ...
Cite this document
(“Student loan vs bank loan Research Paper Example | Topics and Well Written Essays - 1000 words - 1”, n.d.)
Retrieved from https://studentshare.net/english/549813-student-loan-vs-bank-loan
(Student Loan Vs Bank Loan Research Paper Example | Topics and Well Written Essays - 1000 Words - 1)
“Student Loan Vs Bank Loan Research Paper Example | Topics and Well Written Essays - 1000 Words - 1”, n.d. https://studentshare.net/english/549813-student-loan-vs-bank-loan.
(I)Declaration This thesis is my original work and has not been presented for a degree in any university for any award to any examination body. I confirm it is my original work to the best of my knowledge. NAME: SIGNATURE DATE This project has been carried out under the supervision of (INSERDT SURPERVOR NAME) of behalf of (INSERT SCHOOL NAME) SIGN DATE (ii) Acknowledgement I wish to acknowledge all the people who supported me to ensure successful completion of my course plan.
Applying the law to the facts, we understand that Barkley was not eligible to enter into Contract with Chetum. Along with this, Barkley is not eligible to represent the firm of his father in his absence. Therefore, looking at the overall perspective of Contractual Obligations, Barkley could not have entered into a contract with any other party.
2. Main Body Role of government in higher education – the government continues to play the most important role in education, as compared to banks, since most college students have benefited from the government student loans more than bank loans. Comparison of conditions and requirements for qualification of federal student loans and bank loans - Federal loans are easily accessible than bank loans.
The students, those who are pursuing higher education in colleges and universities outside their home town in particular have to bear the costs of college fees, accommodation, living expenses and other courseware related costs. (Deshmukh, 2010) Due to less employment opportunities and lack of means for income generation students are on a very tight budget which is borne either by their parents or by banks as loans.
Among the negative consequences of having too much debt is, first of all, a potential of getting a bad credit history and, consequently, inability to receive other debts in the future. A too large debt amount may make it for
The poll results shows that 57 percent of post-secondary students decided to find work to pay for their school expenses. The polls indicate that 77 percent of the students felt working part-time will affect
From this research it is clear that consumer loan is the amount of money that a bank lends to an individual.
Normally, government regulatory agencies have been put in place to monitor consumer loans. The monitoring system is to ensure that loans offered to consumers are in compliant with protection regulations for consumers.
The Fed figures as released during the fourth quarter of the year 2012 indicate that the amount in debts was at $966 billion. However, the most recent reports indicate that this figure has grown to about $1.2 trillion, and even for the