Benefits of Private Student Loans
Have you reached the lifetime cap for Federal Stafford Loans of $57,500 or $138,500 (graduate)? If so, your next best option could be a loan from a private bank. There are many lenders that offer this loans to students. The repayment terms and costs of private tuition financing can vary substantially, so it is important to shop around. College tuition is expensive and it is not something you should be overpaying. Graduate education is especially expensive and private financing is often the only available option. The list below is some of the top benefits of private student loans.
Helps with expensive tuition costs
Let’s face it. Tuition is expensive and shows no signs of getting cheaper. Private student funds will help you reach your educational goals and get a high paying career.
Great for People with High Credit Scores
A credit score is almost always required for private student loans. This can difficult for young borrows without a credit history. The best bet is to have a parent or guardian co-sign the promissory note. Also, students going into high paying professions, such as medicine or law, will have a better chance of being approved for private loans.
Private Loan Consolidation
Private lenders can often help with loan consolidation. This will simplify the repayment process and will allow you to make only 1 monthly payment, as opposed to keeping track of multiple monthly payments. Just watch out for higher interest rates when going through consolidation.
Work with your Local Bank
Federal Stafford loans are only handled by a few designated servicing companies, such as Sallie Mae and Great Lakes. This can be frustrating for students who wish to work with their local bank or credit union. In some cases, you may be able to get special student financing offers through a local lender or credit union.
Similar terms to Federal Stafford Loans
The majority of private student loan plans are designed to have similar repayment terms as federal loan programs. This helps students manage their borrowing effectively and prevents complicated repayment after graduation. If loans are consolidated this will further simplify the process.
Learn More about Stafford Loans
We hope you learned more about the benefits of private student loans