Federal student loans offer several benefits that private student loans don’t offer. First, since you don’t have to pay back any of the money you borrow, there’s no money to cover expenses. You can also take a part-time job and use your loan money to cover those expenses.

Also, there are some perks that private student loans provide. You can negotiate a better interest rate than what you can get from your student loans. Private student loans don’t have the extra fees or other fees you sometimes have to pay. You wont have to worry about dropping out before you reach your loan deadlines. And if you decide to stop taking out federal loans, you can still use your private loans to cover those expenses, check over here to learn everything about them.

Student loans aren’t only good for students. There are some families who want to expand their financial assets. You may not want to use your parent’s student loans to finance your child’s education, but if you have the money and the desire to open up a retirement account or a 529 college savings account, you might consider using your student loans to get in on the action.

Another benefit of student loans is that your payments wont be as heavy. If you’re paying only 3% of your income, your payment will likely be lower than paying 8% a month with federal student loans.

You may be worried about interest rates on your student loans going up in the near future. You don’t have to worry. Your interest rates can be adjusted up or down annually to fit your budget. You can also make payments automatically, such as auto loan payments or on your credit card bills. You don’t have to worry about being late on your payments because of late fees. Even if your credit score is low, most colleges and financial aid professionals will lower your payments after you’ve made the minimum payment a few times.

Despite all of the good things student loans can offer, your student loans can’t hurt you when you get a job. In fact, once you’ve used your student loans to repay the costs of a public school education, its unlikely you’ll have to pay back your student loans. So don’t worry about carrying around a debt that you cant afford to use.

What if My Student Loan Isn’t at a Fair Market Value?

Its important to know your student loan cant hurt you if you are graduating with a college degree. For example, if you hold a credit card that charges a 5% interest rate, you’ll have to pay an additional $175 in interest. If you don’t have a credit card, you wont have to pay any interest at all.