Personal Student Loans
A personal student loan is often used when grants, scholarships and federal
student loans are not enough to cover the student’s cost of attendance. Like
all financial aid, a personal student loan borrower must seek a degree and
use the funds on college-related expenses.
To be eligible for personal student loans, the borrower must also be
enrolled at least part time at an accredited postsecondary school. Students
also need to meet specified credit criteria or be backed by a co-signer with
a positive credit history.
A personal student loan boasts numerous benefits. The programs boast
high approval rates and allow borrowers to bring on co-signers to obtain
lower interest rates. Interest rates for alternative student loans vary
based on the prime rate. However, the better a borrower’s credit, the better
the rate. Students can also make interest payments while in school which in
return helps to lower their monthly payment later on.
Unlike federally backed student loans, private funding does not require the
lengthy process of the Free Application for Federal Student Aid (FAFSA).
Instead, borrowers can apply on-line through a less extensive application.
In return, a quick credit decision is provided to the student.
Personal college funding is available students who study in the U.S. and abroad.
International students may also qualify for a loan with the help of an
eligible co-signer. Loan repayment begins after the student exits school or
graduates. At the time of repayment, the student can also select from one of
several repayment options based on their personal situation.
Lastly, a personal student loan features higher aggregate loan limits than
its federal counterpart. Limits vary but range from $50,000 (community
college) to $100,000 (undergraduates). Graduate students and graduate health
students can borrow between $150,000 and $220,000 respectively.
Private student loans for
college education, financial aid. All Private medical student loans
and other college lenders, school loans and resources are approved before
listing. July 2008.