College: Preferred Lenders List….Can You Trust It?

Many colleges will send you information about student loans and tuition rates. In fact, you may be bombarded with loan applications, financial aid information and credit offers. One thing that you will probably receive from the school of your choice is a preferred lenders list. This is a list of recommended lenders that provide student loans. Many people blindly go with the first company that accepts them from this list. Some will try the first three or four and then go with the best from that list. Is this really safe? How much extra are these misinformed people paying in the end? It could be more than you think.

Higher education is expensive. Many more students are finding it difficult to avoid getting student loans. Students and parents alike are most likely tired of filling out paperwork and researching schools by the time they apply for a student loan. So, this preferred lenders list seems awfully convenient for choosing the best loan for you, right? Not necessarily. Most schools refuse to disclose how they come up with this list. Many, many schools are under scrutiny for unfair practices when it comes to student loans.

Lots have been caught receiving illegal kickbacks from lenders in exchange for recommendations. The result is trusting parents and students ending up with extremely high interest rates, unfair loan terms and excessive fees. School employees receive cash, trips, cruises and gifts for recommending this bad deal as your best bet. Not all schools are corrupt, but it could really pay off to do some of your own research when searching for a student loan lender.

Fortunately, in this day and age, we have the internet at our fingertips. We do not have to take the word of the suited man behind the desk anymore. We can simply search for student loan lenders online. Companies like www.student-loans.net offer student loans from a multitude of lenders on one convenient site. You can narrow down a search for a loan that meets your needs and compare each lender, side by side, with no biased opinion to cloud your perception. Loan terms, percentage rates, fees and benefits are clearly defined for you to make an informed decision.

Some schools actually do research the preferred lenders list in order to simplify the student loan process for parents and students. So, you do not want to assume that every preferred lenders list you see is a scam. But, you should be aware that it may be preferred by the school and not you. Shop around before you commit. Student loans are a very long commitment and you want to be sure that you select the one with the terms that fit your need.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.

Are Private Student Loans Right for Me?

With higher education costs soaring, more and more students are turning to financial aid for help. Federal student aid offers grants, loans and other types of assistance. Federal aid is by far the biggest supplier of money to students for college. Federal loans include not only grants, but also campus-based loans, Stafford Loans, and PLUS loans for parents and graduate students. The problem is, a lot of students don’t qualify for Federal help and are turning to other sources for help with their college funding.

Nonfederal scholarships and funding may be provided by your state. Check with your school to see if you may qualify for one of the state programs. If you do receive Federal or State Aid, then you may still need more money. College is expensive and includes tuition, books, room and board, as well as travel expenses, bills and food. More students than ever are turning to Private Student Loans for financial assistance with all of the costs that college brings.

Private Student Loans are essentially like regular loans. You must qualify for the loans and may be required to have a cosigner. The difference is that Private Student Loans usually have more flexible repayment schedules to accommodate students. For example, you may not be required to begin repayment of the loan until after you graduate or withdraw from school. Rates can be quite good based on your credit history and income. Be aware that there are a lot of subprime loans out there, which can have very high interest rates and may not be the best option for you.

When you take out a Private Student Loan, you are taking on a serious responsibility. You must strictly adhere to the terms and conditions explained in your contract. Failure to make an on-time payment will be reflected in your credit history for years. Late payments or failed payments on loans are big influences on your credit score. On the other hand, being responsible with your payments and always making them on-time can help you establish a good credit history. Paying on your Private Student Loan can help you show future lenders that you are financially responsible and mature.

If you are shopping for Private Student Loans, you may want to avoid companies or advisors that push one product or one certain lender. Especially beware if the product being pushed is at a high interest rate. Shop around to be sure that what you get is actually the best thing for you. This commitment will last for years, so take your time shopping around. Check out sites that feature many lenders and offer multiple products so that you know they are not biased or influenced by any one company. Do your research and Private Student Loans could help you bridge the financial gap on your journey through college.


About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.

Qualifying for a Student Loan

It’s the holiday season. You’ve trimmed the tree, completed your finals and almost finished your Christmas shopping. Now you realize that your Christmas budget has been ultimately depleted. You still have some shopping to do, some bills to pay and three Christmas parties to prepare for. What will you do? How will you afford it? If your next paycheck isn’t coming before Christmas, you’ve probably gotten yourself into a financial bind.

This is very common at this time of year. Everyone has something to spend money on to make their holiday season a joyful one. The problem is, a lot of people are living paycheck to paycheck already, and college can be especially taxing on the wallet. Whatever the reason, you’re low on funds and you’re starting to consider other options. Someone recommends taking out a student loan to get you through the next semester and this sounds like a great solution. But now you’re worried about your credit score or lack there of. You may not have taken out a loan before and you’re not sure that you’ll qualify.

There are some options for students in your position. One option is to get a conventional loan through your bank. They can look at your spending habits, reliability, deposit history and income. Banks are going to check your credit score and weigh it against your credibility as a customer. If everything checks out to be good, then you’ll most likely be approved for a loan at a pretty good interest rate. If your credit is less than stellar or you haven’t established any credit yet, then you might need to look for other financial solutions.

Student loans take the special circumstances of students into consideration. They offer more flexible payoff plans. Some may be offered through your school. For some student loans, you can apply directly online. If you prefer to speak to a person, most sites have the option of applying over the phone. You may be asked to fax in information or mail in signed documents before you can receive the loan money. Getting a student loan and paying it off diligently and on time can help you establish or improve your credit score.

Qualifying for student loans is usually easier than qualifying for conventional loans. You can use the money for school tuition, room and board, or anything relating to your school activities. Some loans have their own restrictions, so make sure that you ask questions and understand the agreement before accepting the loan money. Make sure that you don’t borrow more than you need or more than you can afford to pay off in a timely manner, and your next school year can be a happy one after all.

About the Author: Evelyn Saunders, a retired teacher, is the editor for student-loans.net, a provider of student loans and information on how to get private student loans as well as consolidation. For more information, please visit http://www.student-loans.net.