Life without going to college is an imperfect life. But some children have poor financial conditions at home. At this time, choosing student loans is a good choice. Today, I will introduce the types of student loans and related knowledge.

At present, there are four types of student loans. National student loans. Commercial student loans. Credit student loans in the place of origin. Interest-free loans issued to students by colleges using state financial funds.

1. National Student Loans

It is the autonomous policies of the relevant departments of the country using economical means and other methods to improve schools under market economic conditions. Measures taken to increase funding for students from poor families in schools.

Students do not need to care about interest issues before graduation. The finance and colleges jointly subsidize the banks a certain amount of risk. Banks, education departments, and schools operate bank loans specially to help poor students.

Students who borrow money do not need to apply for loan guarantees or mortgage some things. But they need to promise to repay the loan on the agreed date. And students also need to bear related legal responsibilities. Students who borrow money apply to the bank for loans through the school. After graduation, students can repay in installments. In addition, the national student loan is interest-free. It is the largest among the four loan methods. And it is the one with the most applicants.

2. Commercial Student Loans

Commercial student loans are loans issued by financial institutions in the banking industry to pay for students in financial difficulties in schools according to commercial principles. Both borrowers and lenders need to follow the four principles of equality, voluntariness, honesty and trustworthiness. Both parties need to sign a loan contract in accordance with the law. The interest on commercial student loans is determined by the institution applying for the loan.

3. Student Loans in the Place of Origin

The student's local government agency helps to apply for student loans. When the student’s study in school, the interest is all subsidized by the local government. Students who borrow money do not need to pay interest. The student needs to repay the loan every year after graduation. And the loan interest is borne by the borrower. The government no longer subsidizes interest. The interest rate of this loan will not go up.

4. Interest-Free Loans Issued to Students by Colleges Using State Financial Funds

This loan method is suitable for school students to apply to the school due to family financial difficulties. The school then handles interest-free loans to students through state financial funds. Students can choose their repayment period after graduation. The maximum period is set by the local government. Students need to repay a certain amount every year after graduation.

When you need a loan, you need to understand the relevant knowledge first. You must have a new understanding of the types of student loans and its related knowledge. Hope this can help students who need loans.