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eLoanFast.com provides reliable, unbiased information about student loans, student loan providers (such as Citibank student loans, Wells Fargo student loans, student loan finance companies and federal direct student loans), and student loan repayment programs .

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Citibank Student Loans and The Student Loan Corporation; Wells Fargo Student Loans; Sallie Mae Signature student loan

What Types of Student Loans are Available?

Many types of student loans exist, but for the purpose of simplification we can say that student loans fall into two categories: federal student loans, and private loans.

Federal student loans are extremely popular and almost every college student these days has at least one. These loans have low interest rates and do not require credit checks or collateral. Student loans also provide a variety of deferment options and extended repayment terms.

Federal student loans are run by the U.S. Department of Education through their Federal Student Aid program. These are the easiest student consolidation loans to get. They give out $60 billion a year in loans and grants. The most common types of federal student loan are the Stafford, Perkins, and PLUS Loans, but there are several other types as well, including ROTC plans. The Stafford loan is the most common of all.

Stafford Loans

A Stafford Loan is a low-interest loan available to students enrolled in a minimum of 6 credits per semester. These loans are made by a lender, such as a bank, credit union, or savings and loan association, and are guaranteed by the federal government. Depending on the student's need, as calculated by the U.S. Department of Education, these loans are either made on a subsidized basis, where the federal government pays the interest during the enrollment period, or on an unsubsidized basis, where the student pays the interest.

Private Student Loans

Private loans are administered by private lenders, in other words banks and private lending companies. The biggest private student loan programs are run by Citibank through their Student Loan Corporation; Wells Fargo Bank; and the Sallie Mae Signature student loan program.

Be aware that private lenders like these charge higher interest rates than the federal student loan program, because student loans are usually unsecured, meaning that the student does not have any collateral (anything of value) to guarantee repayment of the loan. The lender is taking a chance that the student will get a job after graduation and begin paying back the loan. To offset their risk, they charge higher interest rates