What Bank Offers Student Loans?

What Bank Offers Student Loans?

8 min read


Federal Direct Loan Program

Federal direct loan programs include subsidized loans, unsubsidized loans, consolidation loans, and parent loans. Borrowers can choose between private lenders and the federal government to finance their education. Private lenders charge higher interest rates than the government does and offer flexible repayment plans. These loans have competitive advantages over federal student loans but private lenders often require upfront payment fees. Private lenders may not report defaulted loans to credit agencies so borrowers may have trouble getting credit after graduation.


The PLUS Loan was introduced in 2008 under the American Recovery and Reinvestment Act (ARRA) to help parents finance college expenses for children who are dependent upon them. Parents can borrow money for themselves and then lend the funds to students to use at schools. Students may receive money up front or over time. The interest rate on PLUS Loans is fixed and set by the government. Since these loans are issued directly by the government, they are considered safe choices for financing higher education. Unlike most private loans, PLUS Loans do not need to be paid back until the borrower graduates and begins making payments toward his/her own debt.

Perkins Loan

Perkins Loans were established in 1965 as a way for students to pay for postsecondary tuition costs. There are two types of loans – unsubsidized and subsidized. Unsubsidized Perkins loans are offered by banks and insurance companies. Subsidized loans are offered by the U.S. Department of Education and can only be obtained by students in eligible institutions. Unsubsidized loans are less expensive and carry lower interest rates than subsidized loans. However, they generally don’t have any prepayment privileges.

Parent Loan

Parents can make low-interest loans to their children that will cover up to $30,000 of school costs. Parents cannot repay the loans until their child finishes school. Interest accrues while the student is enrolled in school, but the principal isn’t due until graduation. Most parents are not allowed to take out multiple loans at once, so parents should apply for loans individually. If a parent has already borrowed from the federal government, he/she may not qualify for a parental loan. Parents should consult financial aid advisers about how much borrowing is appropriate for their budget.

William D. Ford Direct Loan (Direct Loan)

A Direct Loan is a federally guaranteed student loan that provides low interest rates. Direct Loans allow borrowers to defer paying their loans until after they graduate. While enrollment in school doesn’t count towards repayment, leaving early counts. To qualify for a Direct Loan, students must meet income eligibility requirements. Income limits depend on whether the student attends public or private school and whether the student lives in a state that participates in  IV. Income limitations range from $0-$95,000 for public school students and $0-$100,000 for private school students. Repaying a Direct Loan is calculated using the standard 10-year repayment plan, but the loan is amortized over 20 years.

What Bank Offers Student Loans?

Wells Fargo

Wells Fargo offers student loans at various rates and terms. You can apply online at their website, find rates at www.wellsfargo.com. If you have any questions about student loans, they generally offer customer service 24/7.


RBS offers student loans at varying interest rates. Their website has information on how to get started and what types of loan options are available. To inquire about their rates, call them directly at 1-866-922-0151.

Sallie Mae

Sallie Mae offers both direct and private student loans. Their rates vary depending upon your credit history. Visit their website at www.salliemae.com to see if you qualify.

US Bank

US Bank offers many different types of loans for college students. Their rates vary based on your credit score. 5. Chase

Chase offers student loans at varying rates and terms. You may use their site at www.chase.com to learn more.

What Bank Offers Student Loans?

National Collegiate Trust (NCT)

The National Collegiate Trust offers loans to students who attend accredited schools. NCT offers two types of loan programs. One covers undergraduate studies while the other covers graduate studies. Both types offer low interest rates so they are great options when looking for student loans.

Educational Credit Management Corporation (ECMC)

The ECMC provides private student loans for graduate school and post-graduate education. These are the best loans if you want to have flexibility when dealing with payments. The drawback to these loans is the higher rate compared to federal student loans. However, the lower rate makes them worth considering.

United States Department of Education (US DOE)

The US DOE does not provide direct student loans; however, they do cover some of the cost of attending college. You should check out their website before applying. There is a lot of information about how much money you will receive and what type of repayment plan you qualify for. Also, keep in mind that the amount you receive will vary based on whether you are a current student or just graduated.

What Bank Offers Student Loans?

Federal Direct Loan Program (PLUS)

The PLUS program insures loans between $5,500 and $31,000 at an interest rate of 6.8% fixed APR. You must be enrolled to participate in the federal student loan program; however, if you choose to file bankruptcy, you will not have access to any federal financial aid programs. In addition, you cannot defer payments while making a Direct Consolidation Loan or refinance your current Direct Consolidation Loan.

Federal Family Education Loan Program (FFELP)

This program is designed for undergraduate students who may incur expenses for tuition, fees, room and board, books, supplies, and personal costs at public institutions only. The FFELP enables eligible borrowers to borrow money after they have received their first bachelor’s degree. Undergraduate loans are issued under the Direct Subsidized Loan (DSL) program and/or the Direct Unsubsidized Loan (DUL). If you choose to file bankruptcy and continue your education, you will lose eligibility to receive these loans.

Perkins Loan

A loan offered to graduate and professional students attending higher-education institutions. Eligible borrowers are those who attend one of the accredited colleges or universities participating in the direct loan program. Borrowers can receive a maximum of $20,000 per academic year (fall and spring semesters combined) without regard to need. The interest rate is set at 8%, and the repayment period ranges from three years to seven years. A borrower may reborrow the principal amount of his loan without penalty for up to 12 months beyond the original term.

National Direct Student Loan Program (NDSLP)

This loan is designed for undergraduate and graduate students attending both private and public postsecondary schools. The NDSLP provides funds for qualified borrowers to pay for educational expenses. Students enrolled full time or half time may receive up to $5,500 per academic year for undergraduate work. Graduate students who plan to pursue a career in teaching, business administration, social services, law enforcement, firefighting, nursing, medical personnel, information technology, technical fields and other professions may be eligible for up to $9,200 in annual assistance. The interest rate is fixed at 4.5%. Repayment begins six months following the date of disbursement of the loan proceeds, and the repayment period may range from two to 10 years.

What Bank Offers Student Loans?

Student loans have changed over time and they have gone beyond just having access to a loan to pay for school. Today, students have many different options related to student loans and each option has its own set of pros and cons. If you’re looking to get started, here’s what you need to know about student loans.

The first thing you should do if you want to start thinking about student loans is figure out how much money you’ll need. You may not realize it, but the cost of going to college these days is actually quite expensive. Depending on where you go, tuition alone could end up being around $20,000 per year. That means figuring out how much you can afford to borrow will help you make sure you don’t run out of money before you graduate.

If you have a job while you’re at school, you might already be eligible for some type of financial aid. Your parents might be able to cover some or all of your costs, you could use any scholarships you earn, or maybe you qualify for federal grants. If none of that applies, then you’ll want to look into private student loans, as well as a bank loan.

Private student loans are usually offered by banks or credit unions. These types of loans offer borrowers fixed interest rates that are determined based on their credit score and the amount they are borrowing. Private loans can be less expensive than government-backed ones, but they do require you to make payments until you pay them off. Because these loans aren’t backed by the U.S. Department of Education, you won’t get any additional student loan forgiveness (such as a Public Service Loan Forgiveness program) if you’re working full-time. You also shouldn’t apply for those unless you plan to work for the public sector after graduation.

Once you’ve figured out how much you can borrow, you’ll need to decide whether a traditional loan or alternative financing would work best for you. A traditional loan involves putting down a lump sum of cash upfront along with monthly installments. This gives you a certain amount of control over how much you spend. Alternative financing includes a low rate and no payment upfront. However, if you default on a loan, you could lose everything you put into it, including your home or even your car.

You’ll also need to think about the repayment plan you choose. Repayment plans range from 10 years straight through to 20 years or more. While longer plans seem appealing because you’ll only have to repay once, they mean you’ll have to pay more for your education.

Depending on what type of loan you take out, you could also opt to defer paying back your loan. This means you’re not responsible for making payments right away, but you’ll pay more in interest over the long term. Most people don’t find themselves in this situation, though. Instead, they opt to move forward and take care of it later.

As mentioned earlier, private student loans aren’t guaranteed by the Federal Government. This means borrowers are solely responsible for repaying the loan after they graduate. If you fail to make a single payment or miss a few payments, you could risk losing your home or even your vehicle. There is a way to avoid this, though. In order to receive private loan forgiveness, you’ll either need to work in a field that was deemed “essential” during times of emergency (like healthcare), complete a public service loan forgiveness program, or enroll in income-driven repayment.

These programs allow borrowers to stop making payments on their student debt after a certain period of time. After five years, you’ll be able to completely wipe the debt clean. At seven years, you’d still be able to lower your monthly payments significantly and at ten years, you’re free of your obligation.

There’s so much more to learning about student loans and figuring out which one works best for you. To learn more, check out our blog post on the subject. We’ve got plenty of information available, so feel free to reach out to us with any questions!

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