What Is A Student Loan Broker ?
A student loan broker arranges loans between a borrower - in this case, a student - and a lender of funding sources.
Funding sources for students include:
- Federal Loans: American examples include Stafford (subsidized and unsubsidized) and Perkins Loans; Canadian examples include the Canada Student Loan Program (also referred to as the National Student Loan).
- State Student Loans
- Federal Work-Study Jobs
- PLUS Loans (originally known as Parent Loans for Undergraduate Students) are for parents to help fund their children's education. Now, parents may get Parent PLUS loans for dependent undergraduate students while graduate students can get Grad PLUS loans for themselves.
- Private Education Loans (also known as Alternative Education Loans) provided by private lenders are considered if other sources of funding do not fully cover the cost of one's education. This financial source does not use government funding. This type of loan closely resembles personal loans rather than parent and student loans.
What Is A Student Loan Consolidation Broker ?
A student loan consolidation broker is a type of broker that helps to combine many student loans into one single loan.
For instance, a student may have three credit card loans. Instead of making three separate payments, the payments are combined into one payment to be paid out over an extended period of time than the time frame agreed upon for making the three separate payments. The total cost of that one payment is less than the three payments previously made, and is shared by the three credit card companies. This is known as debt settlement.
What Is A Private Student Loan Broker ?
In the USA, this type of student loan broker locates funding sources from private individuals, various banks, and online lenders.
In Canada, private lending can come from individuals, companies, or foundations/organizations.
What are the best private student loans in 2017 ?
Keep in mind you will often require a co-signer to qualify for a private student loan such as a parent, relative, friend or employer. These types of co-signers can also help you when you want a better rate on private loans for university/college.
Best Lenders in the USA:
How Can I Become A Student Loan Broker ?
With our high-income loan broker program, you can get started as a student loan broker in about 10 days.
Just go to our home page to find how to become a student loan broker now.