by Les Scammell

Created on: October 20, 2009

Late in March 2009 one of the largest providers of student loans in the US changed their rules. Rather than deferring loans until their education was completed, SLM corporation, better known as Sallie Mae, now requires students to make monthly payments on their student loans commencing one month after taking out the loan. The monthly payments must meet interest charges as a minimum.

This change has lead to many students and their parents seeking alternative student loans. Sallie Mae have had a reputation for looking after students. This has included minimizing fees and charging a reasonable interest rate. This makes shopping around for alternative loans rather difficult since you cannot compare apples with apples.

There are many online websites that offer loan comparison tools. Some of these sites are honest in the data they provide. There are just as many that manipulate the results to display loan options that more favorable to their affiliate incomes than they are to your best interests. The biggest problem is - they are almost impossible to tell apart. If you wish to use one of these loan comparison tools, I suggest you use at least three and compare the results from each. If they all show differing results, move on and find other sites - there are plenty of them.

Student advisory centers in each college may be able help. They often have the latest information on loans that are available in that particular city or state. There is also the option of applying for a Federal Loan if you meet the criteria. Scholarships, grants, fellowships and tuition payment plans could also be viable alternatives to student loans.

Federal loans include Stafford loans. These are generally subsidized loans made to students that covers the some or all of the interest on a loan. Students need to willing to provide proof of financial need for these loans.The federal Parent Loan for Undergraduate Students (also known as PLUS) allows parents to borrow to cover any costs not already covered by a student's financial aid package. PLUS loans have been extended to graduates.This enables them to continue their postgraduate training without having to worry about financial problems.

Student loans can be a real minefield to negotiate at times. Finding a student loan adviser can often be the best approach. The can often help to negotiate a student out of one loan and into another that is better suited to their circumstances.

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