College Tuition is Rising, What Will You Do?
Rising college tuition, together with limited government financial aid, has created a widening gap between the cost of college tuition and the ability to afford it. Alternative student loans can fill the gap, allowing you to borrow the difference between college expenses and Federal financial aid such as the Stafford College Student Loan. This only means fewer out-of-pocket expenses until after you have graduated.
Benefits of the Alternative Student Loan
• Deferred payments while in college and for a six month grace period after graduation
• Possible 2% graduation rewards based on your outstanding principal balance
• No up front, origination, guarantor, or prepayment fees
• Lower your interest rate by 0.25% when you have chosen to have your payments automatically deducted from your personal checking account
• Rates as low as Prime minus 0.50%, based on personal credit evaluation
• Annual maximum is 100% of your Cost of Attendance minus other financial aid, based on school certification
Eligibility for an Alternative Student Loan
• Must be enrolled at least half time at an eligible college or university
• You must be a U.S. citizen or permanent resident
• You must be the legal age of majority or at least 18 years of age with a co-signer who is of legal age of majority.
• You must apply with a co-signer
Frequently Asked Questions about Alternative College Student Loans in General
What is an alternative student loan?
Unlike Federal College Student Loans, alternative (private) student loans are specialized education student loans based on ones credit history and income and should only be considered after all federal college student loans, grants and scholarships have been exhausted. Lenders will typically give you a better term for better credit history.
What can alternative student loans be used for?
Alternative student loans can be used for any education related expenses including such things as tuition, books, transportation as well as room and board.
Who can apply for a alternative student loan?
The college student must apply for the loan. Since many college students do not yet built an extensive credit history, they will probably need a credit worthy co-signer to apply for this student loan.
Are there application deadlines for alternative student loans?
No. You may apply for an alternative student loan at any time during you college years.
How does the application process for an alternative student loan work?
You can either fill out an application online or simply go to your local financial institution to see what they can offer you. Once you have determined the amount and were you want to borrow your money, you will usually need your Social Security Number, driver’s license, co-signer information, tax returns, and two additional references ready. You and your co-signer’s credit will be checked at this point. You can usually then check the status online at any time.
Once you have made the decision to pursue that alternative college student loan, relieve will come to you. You will then be able to pay your tuition in full, buy those books you need, and secure housing for the full year. Peace of mind is what you need at this very important juncture in life.
November 9th, 2008 at 9:03 am
Is an Alternative Student Loan just like getting a second on your home?
November 11th, 2008 at 2:52 pm
It is actually different. As far as credit history and such, it is a major factor and your home could actually be used as Collateral. But you would not be putting a second mortgage or refinancing your home. Unless of course, that is they way you wanted to go. It would be an option for others to actually obtain a second mortgage on there home and pull out the equity for the child’s college.