The concept of student loan is very popular in the whole of America but there are some associated misconceptions too that can lead to trouble. Some don’t like availing the same, some actually need them and there are some who don’t even understand the concept of student loan. To make it simple for all we are going to share a few facts about student loans with you.
” Important facts to know about student loan before you avail one | Compare Students Loan rates “
What will be the collateral for a student loan?
Imagine you buy a house or a car taking a loan. So in both cases, the collateral will be the value of house or car respectively. If you fail to repay the loan your car or house will be ceased by the bank to recover the loan amount. When you apply for student loan what you guess will be the collateral for you? It will be the capability of earning that will be considered as your collateral. If you don’t repay the loan your lender will take away your salary, Social Security and will also offset the tax refund and credit it on bank pool.
Who will be responsible to pay the loan?
In general parents are the individuals who apply for student loans for their children education. Many parents are having the misconception that it will be the responsibility of the children to repay it back. But this is one of the biggest misconception people are having about students loan. If the parent is making the application for the student loan for children education it will be his/her responsibility to repay it back not of students. If after getting employment student denies repaying the loan then its parent’s responsibility to clear it off as it’s taken by a parent. So always ensure student loan is applied and taken by the prospective student as here the collateral is earning.
If I fail to graduate who will repay the loan?
Whether you graduate or not from college it is your responsibility to repay the loan in the given time frame. When there is a consignor associated with the loan then automatically the consignor becomes responsible towards repaying the loan if the student fails to do so.
There are many more critical facts associated with student loan which you will get to learn when you get in touch with the lenders of this loan. There are several financial institutions including the banks who offer such loans for student’s education. Social Finance, Inc or in short Sofi is one of the reputed personal finance company which also offers student loan.
If you are in the mood to know about the prevailing rates of the student loan in the market before applying for a loan with Sofi then we recommend you to compare Sofi student loan rates with rates offered by other lenders. This will give you an idea as which one is the best for you and why. You can also personally visit the websites of the leading lenders of the industry to know about the loan features and rate of interest charged.