When Federal financial aid falls short of the full expense, considering a private student loan is sometimes your best option.

Whether this is your first year at a college or university or your last, you are bound to have surprise expenses that you did not factor into your educational costs. Tutors, computers or software, books, last minute tuition hikes, transportation needs. There are many student loan companies with flexible supplements to your student aid package to help cover those expenses not met by your existing student aid package.

Generally, most student loan lenders will provide a fast and easy application process, generous and flexible repayment terms, and competitive interest rates; with their goal being to help you achieve your education goals.

Some Private Student Loan Credit Guidelines and Recommendations include

A credit worthy applicant demonstrates a current ability to repay a loan. To determine if you are eligible to be approved as a credit worthy applicant ask yourself if you meet all of the criteria listed below:

• You must have an employment history of at least two years (if self-employed, have been in business for at least two years),
• You must have proof of current income (and you must maintain employment with same employer or in the same field while you are attending school)
• You must have a satisfactory credit history of at least 21 months,
• You must have resided at your current and immediately preceding addresses for a total of at least 12 months, and
• You must be a U.S. citizen or permanent resident and have resided in the U.S. for the previous two years.

If you are not able to check off all the above boxes, you should apply with a qualified co-signer who meets the established requirements. International students can sometimes apply, but must have a qualified credit-worthy U.S. citizen or permanent resident co-signer.

Benefits Of Applying With A Qualified Co-Signer

Even if you meet the above established credit guidelines, it may be in your best interest to apply with a qualified co-signer.

Generally, benefits of applying with a credit-worthy co-signer may include:

• Increased chance of approval
• Lower origination fees
• Lower interest rates
• Smaller monthly payments
• Less interest paid over the term of the private student loan

AVERAGE College Student Loan Borrowing Limits (lenders vary)

• Borrow annually up to the lesser of $40,000 or the estimated annual cost of attendance
• $150,000 aggregate maximum borrowing limit
• $1,000 minimum loan amount
• Undergraduate and graduate borrowers may borrow annually up to the lesser of the cost of attendance or $40,000

Eligibility notes

• An undergraduate student enrolled in a degree or certificate program
• Enrolled at least half-time as defined by your school
• Proof of enrollment must be provided
• You must meet the credit requirements below: (a co-signer may be required)
• Have a satisfactory credit, residence and employment history of at least two years,
• Have proof of current income (If self-employed, have been in business for at least two years), and
• Are a U.S. citizen or permanent resident and have resided in the U.S. for the previous two years, or, you are an international student with a qualified credit-worthy U.S. citizen or permanent resident co-signer.

It is important to note the above information does not pertain to one lender in particular. Lenders vary, so be sure and get loan specifications with the lender of your choosing.