Is A Student Loan A Personal Loan

Private student loans and personal loans are similar in that they both require a credit check and your interest rate and other loan terms depend on your credit and financial situation.

Is a student loan a personal loan. Personal student loans for living expenses while a standard education loan is typically tied directly to the school meaning that administrators there tend to set the amount of the loan personal student loans provide a student with more control. Personal loans and private student loans are handled differently in a bankruptcy. Many lenders have options to help you refinance your personal student loans.

How you receive your money. You buy a home with a mortgage loan you purchase a car with an auto loan and you pay for college with a. Private student loans require a credit check a decent credit score and proof of income to show you can repay the loan.

Student loans are meant for any expenses related to attending a college or university. While similar to using a personal loan the main difference is the lending products are designed with student loans in mind. How to deal with student loan debt.

Some loans are earmarked for a specific purchase. Both private student loans and personal loans offer a wide variety of repayment terms depending on the lender. First let s define a personal loan.

Personal loans are considered consumer debts and are dischargeable through bankruptcy. The standard repayment term for a federal student loan is 10 years but these loans also offer graduated extended and income driven repayment terms. You can use your loan for tuition room and board books or any other legitimate education expense.

If a borrower cannot afford their debts and needs to file for bankruptcy personal loans can be forgiven or wiped out through this process. One difference is that many private student loan lenders offer repayment features that are more beneficial for students than personal loans.