The current Subsidized Federal Stafford Loan was once simply known as the Guaranteed Student Loan that perhaps you are referring to. The term now is applied to any state or federal loan that is guaranteed against default by the lender.

Guaranteed student loans are great for several reasons. They are extended from a lending institution under the guarantee of the Federal government. The Federal government takes on the responsibility for paying the interest on the loan as well as paying the lenders to manage the loan – hence the nickname ‘government guaranteed student loan’.

The Federal government also assumes the responsibility for the loan if the student defaults, eliminating almost any degree of risk for the lender. The one percent default fee (previously called the (guarantee fee”) that is collected from each disbursement is paid to the designated guarantee agency to cover the costs of insuring the loan.

Some guarantee agencies have built up enough of a reserve that they are able to waive or reduce the default fee. If the borrower defaults, dies or becomes totally and permanently disabled, the guarantee agency will reimburse the lender for the balance remaining on the loan.

Hopefully this answers the first part of your question. You’ll need to google “Guaranteed Federal Student Loans”. Now we will take a look at the second half of your question regarding what is the best online personal loan. This one you will have to judge for yourself, but we will give you a good start.

Best Online Personal Loans

If you have any idea as to what state you will be attending college at, you have won half of the battle. You will be able to narrow the search quickly and map out a road to several good online sites with reliability and without hopping around.

There are now some sites that have grown into a full-service education financing operation that act as a servicer, lender and a secondary market in addition to a guarantor. They offer Stafford, PLUS, Consolidation, and private/personal guaranteed student loans.

As an example, one site offers repayment incentives which include 0 percent default fee, origination fee reductions of up to 3 percent (depending on the state), a 0.25 percent interest rate reduction for automatic direct debit of monthly payments and a 2 percent interest rate reduction after 48 consecutive on-time payments.

By going online it is easy to compare what the many offers are while sitting in your own home and without feeling any pressure. To help you get started we will give you some sites we have found to be worth searching.

Once again, not knowing what state one is interested attending college in, it is difficult to narrow it down personally. However, these sites might lead you to the one that you need. At least this will give you a start and some good information.

aescs@aessuccess.org
ubfirnatuib@college-assist.com
www.StudentLoanonline.com
eac@eac-easci.org
customersupport@mail.csif.org
www.FurtherYourEducation.com
www.MappingYourFuture.com
www.collegeadmissionsandfinancialaidcalendar.com

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