Federal Housing Administration loans feature lower down payments and closing costs as well as more flexible credit criteria
than private lenders offer, which makes them attractive options for people with less - than - stellar credit.
At the time, a Chase spokesperson noted that after the recession borrowers were much more inclined to take out student loans from the federal government
rather than private lenders.
Pave offers unsecured personal loans with interest rates beginning as low as 6.00 % APR (as of December 2015); this makes them a much better
option than some private lenders, who can offer you student loans that might come with a much higher interest rate.
All loans are refinanced through Direct Loans or the FEEL Program and given one general interest rate, which is usually
higher than a private lender.
Bhole finds that graduate borrowers opting for Grad PLUS loans over private loans can not be completely explained by the government offering lower interest
rates than private lenders.
If the Loan to Value (LTV) ratio is less than 85 %
than a private lender can provide a mortgage without issue.
However, it is true that if you default, the government has a lot more ways to come after
you than private lenders do.