Student Loans
Student Loan Choices
While there are many different loan options available, there are really just two different kinds of student loans:
- Federally guaranteed loans. These loans offer some of the lowest rates, and the most flexible repayment options. They do not require a co-signer, and you can get some of them regardless of your financial need. In some cases, you may have to borrow directly from the government.
- Non-governmental (or "private") loans. Lots of lenders offer alternative loans, but sometimes the rates are higher than federally backed loans, and the terms not quite so flexible. And many private loans require a co-signer.
If you are awarded a student loan, most schools will ask you to select a lender from a list of lenders. It is your right to choose your own lender even if Compass Bank is not on the list. (The only exception is with schools which participate in the Federal Direct Loan Program. At those schools you must borrow directly from the Federal government.)
Apply early to ensure you'll receive funds in time for the start of the semester.
Not all schools process loan applications the same way. Some want you to use a paper application, while others have you fill out a data sheet for electronic processing.
Loan funds will go to the school via check or electronic fund transfer.
