What does guaranteed student loan mean?

Guaranteed student loans are Federal or state funded loans for students looking to finance their college education. In effect, these loans were underwritten and guaranteed by the Federal government, ensuring that the private lender would assume no risk should the borrower ultimately default.

Is Sallie Mae a guaranteed student loan?

The bottom line: Sallie Mae was originally founded in 1973 as a federally guaranteed student loan program. Today it makes private student loans, but it stopped servicing federal loans in 2014. Its private loan is best for part-time students and those who want flexibility with repayment.

Who are the banks that guarantee student loans?

The Guaranteed Student Loan Program (FFELs) Under the guaranteed student loan program, private lenders—including Sallie Mae and commercial banks—issued student loans that were guaranteed by the federal government.

Can you get a student loan from a private bank?

When college-bound students have exhausted all other forms of financial aid, it may be necessary to consider a private student loan. Most national banks and private lending institutions offer their own types of education loans. Each lender sets their own terms and conditions, and no two private student loans will be exactly alike.

What kind of loans do you get for college?

Students may be eligible to receive subsidized and unsubsidized loans based on their financial need. Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school.

What kind of loans are guaranteed by the government?

The Guaranteed Student Loan Program (FFEL) Under the guaranteed student loan program, private lenders—including Sallie Mae and commercial banks—issued student loans that were guaranteed by the federal government. Guaranteed loans are also called Federal Family Education Loans (FFEL).