| Private student loans aren't quite as easy to get | | | | lender. |
| today as they once were. The reason why lenders | | | | Students can also get a private Sallie Mae loan if they |
| are becoming more hesitant about making student | | | | don't qualify for the federal program. These private |
| loans is probably the high default rate. That's not to | | | | loans are usually referred to as "alternative student |
| say that student loans are not available at all. They | | | | loans." They are personal loans and are generally not |
| are, but the requirements for making student loans | | | | subsidized by a federal program. Students (and their |
| have gotten more stringent. | | | | parents) should consider a Sallie Mae loan rather than |
| Qualifying for a Sallie Mae student loan is a bit harder | | | | going to a bank because the interest rates are |
| now as well. The federal program, in conjunction with | | | | almost always lower. |
| alternative financing options, can be a great help to | | | | Remember that federal loans carry income and grade |
| students who would not otherwise qualify. | | | | point restrictions. Private loans do not usually have |
| There are two types of federally funded student | | | | such restrictions and generally more money can be |
| loans - the Federal Stafford Loan and the Federal | | | | borrowed using a private loan source. |
| Perkins Loan. | | | | Sometimes students need to consolidate loans so |
| The Perkins Loan is a little different from the usual | | | | they can get a lower interest rate and lump loans |
| student loan in that the school attended is not the | | | | together so that they only make one monthly |
| lender. Some schools do not participate in the Perkins | | | | payment. Sallie Mae can combine the payments from |
| Loan. Sallie Mae can act as the lender for a Stafford | | | | the various loans, both federal and private, into one |
| Loan. They can also act as the guarantor for the | | | | convenient monthly payment. |