I Need A Private Student Loan
It is always encouraged that you first maximize scholarships, grants and federal college student loans before applying for a private student loan. When these sources of college financial aid are not enough to pay for college, a private student loan will help you fill the financial gap. With a private student loan, you will be able to cover up to 100% of your cost of higher education and make no payments until months after you have graduated.
There are many lenders and financial institutions available for all to apply for a private student loan. It is important first to check with your schools financial aid office. They may have restrictions of Private Student Loans that you need to know about before you secure one for your education.
What are the benefits and advantages of a private student loan. I have outlined some basic benefits and advantages that many private student loan lenders will offer. However, not all will offer the same thing, that is why you need to compare the private student loans you have been offered.
• Typically no payments will be required while the student is enrolled at least half-time in school.
• There will usually be up to a 12-month grace period after the student graduates or six months after dropping below half-time enrollment before any private student loan payment need to be made.
• Most will offer an online application that is a very simple process that can get you an online decision in less than a minute.
• A private student loan can also be used for a graduate or undergraduate education.
• Any private student loan fees will probably be financed so borrowers get a private student loan with no out-of-pocket expenses. The interest on the private student loan may also be tax-deductible.
• Most lending institutions can offer repayment term of up to 30 years, depending on private student loan balance.
How does one become eligibility? To become eligible for a private student loan, a student must meet the following general criteria:
• Must be enrolled at least half time at one of may approved schools;
• Must be at least 18 years of age (19 in Alabama and Nebraska, 21 in Puerto Rico and Mississippi);
• Must be a U.S. citizen or eligible non-citizen with the Proof of Residency card (I-151 or I-551); and
• Must have acceptable credit history or an acceptable cosigner. We encourage all private student loan applicants to apply with a credit worthy cosigner to increase their chances of approval and best interest rate.
With many lenders or financial institutions, they will have a program like a Borrower Savings Program. Utilizing this program with your lender may make you eligible for cosigner release and interest rate reductions for direct debit and for on time payment of your private student loan. You can also prepay on the loan penalty free at any time.
I have laid out some pretty simply rules you need to be aware of. Know you need to do the work. Do your homework and research many different lenders or financial institutions. Remember the chances of a private student loan following you for many years are high. Do your self a favor and read the small print before you sign anything. You will thank yourself in the future when you have been approved for that new car or home mortgage loan.