LendEDU | Educated Financial Decisions (2024)

FAQs

What is a federal unsubsidized loan and why would someone want one? ›

Unsubsidized Loans are loans for both undergraduate and graduate students that are not based on financial need. Eligibility is determined by your cost of attendance minus other financial aid (such as grants or scholarships). Interest is charged during in-school, deferment, and grace periods.

Generally, there are two types of student loans—federal and private. Federal student loans and federal parent loans: These loans are funded by the federal government. Private student loans: These loans are nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school.

LendEDU is a marketplace for student loans and student loan refinance. With one short submission, they allow users to compare up to 12 different student loan lenders. LendEDU does NOT hurt your credit!

It encompasses a wide range of topics related to managing money, including budgeting, saving, investing, borrowing, and retirement planning. Financial literacy is essential for individuals to navigate the complex world of finance and make sound financial choices that align with their goals and values.

That said, if you do decide to take on federal loans, it's generally wise to accept subsidized loans first because they offer more benefits in the form of government interest payments. Unsubsidized loans, on the other hand, put you on the hook for all of the interest that accrues on the loan.

Key Takeaways. Federal student loans can be subsidized or unsubsidized. A student's eligibility for subsidized loans is based on financial need. Although both types of loans have to be paid back with interest, the government makes some of the interest payments on subsidized loans.

Private student loans typically require a credit check and may have higher interest rates, but they can be a good option if federal loans are not enough to cover educational costs. Some borrowers may need to take out a mix of both federal and private loans to cover their educational costs.

Review your billing statement

For federal student loans, the top of a student loan bill will have the name of your student loan servicer and the name of your federal student loan program. For private student loan bills, you'll see the name of your private lender on the bill instead.

Following a public comment period, the Federal Trade Commission has finalized a settlement with Delaware comparison shopping website LendEDU over allegations that it promoted deceptive rankings of financial products for a fee and posted fake positive reviews of its website.

Who owns LendEDU? ›

LendEDU was Co-Founded by Nate Matherson and Matt Lenhard in 2014. LendEDU is a personal finance comparison website. Our goal is to create transparency in a number of markets including student lending, unsecured lending, auto lending, banking, credit cards, and some misc. insurance products.

While some loans may start out at a reasonable interest rate, predatory lenders don't abide by the same rules as federal loans, which never increase. Some lenders may double or triple the interest rate over the lifespan of the loan, making it nearly impossible to pay off.

In addition to loans related to the cost of tuition and class supplies, many students also require cost-of-living loans because of their inability to work full time while pursuing an education. Furthermore, many students are financially independent for the first time, resulting in an especially stressful time for them.

Only 57% of adults in the United States are financially literate. Missouri, Utah and Virginia boast the best financial literacy rates, while Alaska, Washington, D.C. and South Dakota have the worst financial literacy rates.

Financial Literacy is the possession of a set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources. The ability to understand and effectively apply various financial skills, including personal financial management, budgeting, and investing.

If you take out a Direct Subsidized Loan, you will not be charged interest while you're in school, during your grace period, or during other periods of deferment. If you take out a Direct Unsubsidized Loan, interest will accrue on your loan as soon as it is disbursed, even while you are in school.

Federal loans generally have more favorable terms, including flexible repayment options. Students with "exceptional financial need" may qualify for subsidized federal loans, while unsubsidized loans are available regardless of financial need. The interest is usually lower on federal loans compared to private loans.

Which Student Loans Should You Pay First: Subsidized or Unsubsidized? It's a good idea to start paying back unsubsidized student loans first, since you're more likely to have a higher balance that accrues interest much faster.