A lender is a financial institution that provides funds to the student or parent for an educational loan.
A loan is a type of financial aid that must be repaid, with interest. The Federal Student Loan Program is a good method of financing the costs of your college education. These loans are better than most consumer loans because they have lower interest rates. The Federal Loans and Perkins Loans also provide a variety of deferment options and extended repayment terms.
Under certain circumstances, such as practicing medicine in a national shortage area or teaching in a rural region, the federal government will cancel all or part of an educational loan.
Students with educational loans are required to complete entrance counseling before they receive their first loan disbursement Students are required to complete a loan exit counseling session before they graduate or otherwise leave school.