Private Student Loan Breakdown
WHAT is a private student loan?
Private student loans are offered by private lenders. A private student loan enables you to borrow the money you need to pay for college.
WHY do I need a private student loan?
If your financial aid package from the school fails to meet your need, you may need to apply for a private student loan.
WHO can take out a private student loan?
Both students and parents can take out private student loans to pay for the student’s education, if eligible. Eligibility may be based on the credit scores of the borrower (and cosigner, if any), debt-service-to-income ratios, minimum income requirements and other criteria.
HOW do I know which lender to choose?
Borrowers choose lenders based on a combination of cost, convenience and customer service.
Since most private student loans do not provide up-front pricing, prospective borrowers may need to apply for several different private student loan programs to determine which will charge them the lowest interest rate.
Talk to your school about their experiences with the lenders you are interested in. Some colleges provide a listing of two or more preferred lenders.
WHERE can I apply for a private student loan?
Most lenders have online applications. However, it is important to research the loan programs carefully, as interest rates and other terms may vary significantly from lender to lender. Students should always borrow federal first, as federal student loans are cheaper, more available and have better repayment terms than most private student loans.
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