5 Types Of Loans You Can Choose From As Per Your Requirements

types loans choose from bank lending

With the high aims of the students today, it is essential that their interest must be encouraged. Finance or any other hindrance may not bar them from soaring high. Here are some of the types of loans that are available for the students and will facilitate their education or their way to success. Besides the types of loans, you must thoroughly learn about how to apply for them, which we will discuss below in this article. 

1. Student Loans

After or before college, parents and students both explore various options wherein they expect to pay less interest. In the course of exploring loans, it is found that usually federal loans, scholarships (if you have done well in college or school), grants that are raised by various committees are some options that exhaust by the time the college is completed. In that case, private loan options are the best and Purefy is one of them which offers transparency in all transactions and even the student himself/herself can understand the terms to move forward for the loan. This is available exclusively for US students. 

2. Parent Loans

As we can comprehend through the title, that parent loans are taken by the parents for the education of their children. This is usually done by the parents when children opt for higher studies. Numerous organizations offer this loan at a subsidized rate. The main criterium for this loan is the credit history of the parents. The parents in whose name the loan is taken should qualify the credit norms based on which the amount of the loan is extended to the parent. 

3. Refinancing Student Loan

In certain cases, if the student is found incapable of returning the federal loan, then this option can be explored where the student can refinance the loan in any one of the parent's name. In this case, the student usually losses the advantage of income-based repayment, or loan forgiveness if the student, later on, gets into public service and finally, the benefit of paying off the entire loan in case of death or disability. The parent in whose name the loan will be transferred will begin to repay it as soon as it is transferred and terms are usually different from that of a student loan. Purefy provides great assistance in case you wish to refinance your student loan. 

4. Refinancing The Parent Loan

Usually, when the students are capable of paying off the loans that were taken by their parents, the loan is refinanced into their name. Sometimes, in such a case if the parents have taken private loans or PLUS federal loans, the rate of interest is high. In that case, the parents compare the rate of interest and get the loan refinanced into the student's name. 

5. Refinancing Couple Loans

Yes, couple loans are meant to reduce the burden on one parent. In some cases, when the debt of the student loan is on both the parents. In this case, the loan is refinanced to the parent whose income is higher or the one who has a better credit history. In this case, the rate of interest gets combined and the loans are refinanced to the couple from the student. This is also a form of a consolidated loan and is rather an innovative way. However, this loan is not available to many and can be availed through Purefy. 

Besides these loans, the interest rate differs from the kind of loan one opts to take. Where federal loans have less rate of interest, the private ones have a slightly higher rate. Both the loans have their own pros and cons so opt according to your suitability.

I hope you enjoyed this blog post about the major types of loans you can choose from personally or from as a business in need of funds.

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