Selecting a student loan can be overwhelming with so many choices. It is worth the investment to research options to identify the lender and product that fits best with your situation. This guide provide some high level information as you embark on selecting a student loan.

Loan Type: Student loans are split into 4 categores.

• Undergraduate: A loan to be used to fund an undergraduate degree. This can sometimes also be used for associates degrees, etc depending on the lender
• Graduate: A loan to be used to fund an undergraduate degree. This includes MBA, law, PHD, etc.
• Parent: A loan being obtained for the parent of the student.
• Refinance: Changing the terms of the financing on a current loan. This is typically used when wanting to consolidate multiple student loans into one.

Payment Type: Student loans can be based on a fixed rate or a variable rate. A variable rate loan will result in the interest rate changing on a specific frequency.

Loan Term: The length of the loan contract, typically expressed in years. The term can range from 5 months to 25 years.

Annual Percentage Rate (APR): APR is the annual cost of a loan to a borrower — including fees. Like an interest rate, the APR is expressed as a percentage and includes other charges or fees such as closing costs and loan origination fees.

Loan Amount: The loan amount is the amount the lender will provide to the borrower. This amount can have multiple requirements based on lending yearly and total accumulation.

Interest Rate: The rate that determines the amount of interest owed. The rate is multiplied by the remaining loan balance to determine the interest amount.

Principal and Interest (P&I): Principal is the payment amount that is used to reduce the loan balance. Interest is the borrower costs owed based on the interest rate