Read this article if you’ve borrowed money to attend college and aren’t sure what type of loans you have. Estimated read time ~3 minutes.
You need to know the type of student loans you have in order to choose the right repayment option and make the most of your money.
So how do you know what type of student loans you have? First off there are two types of student loans “federal” and “private”. Federal loans are funded by the U.S. government and come with a standard set of borrower benefits and fixed interest rates. Private loans are made by banks and other private lending institutions and often don’t carry the same benefits as federal loans. Determining which type of loans you have is easy if you follow the directions below.
Ask your loan servicer(s).
If you have more than one loan servicer that’s a good sign that you have at least one loan is with a private lender. When you borrow federal loans they will be serviced by the same company. Your loan servicer(s) will let you know if you have federal or private loans with them. Just give them a call or send them an email.
Go to the National Student Loan Data Services (NSLDS) website.
This step require a little effort on your part because you will need an FSA ID (you can set this up when you go to the website). Once you’ve gotten that though it’s very easy to track your loan information. Your federal loans will be listed there.
Call the Federal Student Aid Information Center (1-800-433-3243).
The FSA information center employs counselors who can help you find out the type of loan you have when you call.
Check out the name of your loan.
Here’s the list of federal loans: Stafford, PLUS, Perkins, FFEL, William D. Ford Driect Loan Program (aka Direct Loans).
Other things that hint at the source of your loan.
If you needed a credit check or a cosigner that’s a strong sign it’s a private loan. If your repayment period begins while you’re still enrolled in adequate credit hours, it’s a private loan.
So what kind of loans do you have?
I’m curious to know what type of loans you have? Do you have federal, private, or a mix of each? My loans are completely private now that I’ve refinanced but prior to that were all federal. Comment below or head over to the Repayable Facebook Page and let me know what type of loans you have!
Additional Resources:
https://studentaid.ed.gov/sa/types/loans
https://studentaid.ed.gov/sa/types/loans/federal-vs-private
http://www.studentloanborrowerassistance.org/start-here/what-type-of-loan-do-i-have/
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