A private student loan is an unsecured loan that is designed to pay for a students college-related expenses. Many students apply for private student loans once they have utilized all their federal financial aid funds. Read on to learn more about private student loans and to find out if this option is for you.
How Do I Begin the Application Process?First of all, you must meet with your financial aid counselor to confirm your cost of attendance (COA) for that academic school year. Your COA typically includes college-related expenses, such as tuition and fees, room and board, books and supplies. Once you confirm your cost of attendance (COA), you will know the loan amount that you can request on your application. Please keep in mind that your counselor will subtract any federal financial aid that you have been awarded from your COA (federal grants and loans, scholarships, and work-study funds). So, if you qualify for a private student loan, you may only receive funds up to your COA for that school year.
What are the Requirements for a Private Student Loan?Private student loans are credit-based loans, so you will need to have good credit in order to qualify for this type of loan product. However, most lenders realize that many college students do not possess a sufficient credit score and/or have not established an adequate amount of credit in their name. Therefore, nearly all private student loan lenders will allow students to apply for a private loan with a co-signer. Although all lenders have their own specific guidelines for private student loans, the co-signer must have an appropriate credit history, with an acceptable credit score, stable work history and references. Also, in order to qualify for a private student loan, a student must be a U.S. citizen or permanent resident and be currently enrolled at a lender-eligible school.
Where Can I Apply for a Private Student Loan?Many financial institutions offer private student loan products. So, speak with a loan specialist at your bank or credit union to inquire about private student loans. In addition, you may also apply for a private student loan by visiting the following websites: SallieMae.com, NextStudent.com, FinAid.org, and PrivateStudentLoans.com.
A private student loan is like any other private loan. Each private lender will determine what qualifications they require the student to meet before they will lend out their money. Some lenders will want some form of collateral and others will base their decision solely on the student's ability to repay the loan.
a secured loan
Any person can apply for a private student loan at any time during the school year. Request for private student loans can be found and filled out online.
When you are receiving a private student loan, it cannot be consolidated with federal student loans so you would need to take that into consideration. Here is a website to find out more about private student loan consolidation. http://www.finaid.org/loans/privateconsolidation.phtml
To look for private student loan consolidations, on can go to the Student Aid website. The website has information about student loans, including how and where to consolidate them.
AnswerThe short answer is no, you can never change cosigner on a private student loan. If they die, however, it is transferred to you.
there are a couple of credit based companies that will give a private student loan to creditworthy student and a co-borrower such as a parent if necessary. You can use the loan for tuition, books, transportation, housing, and any other related expenses that you'd have as a student.
Student loan rates vary by the type of student loan, but can be either fixed or variable rate. Most federal student loans are fixed at 6.8% Private student loan rates are typically higher.
If the student loan is a federal loan and not a private loan then the answer is no. Federal student loans can not be included in bankruptcy, you will always be responsible for repayment of FEDERAL student loans.
Yes you are.
Private student loans are credit-based, non-federal student loans that can help you cover any school expenses you have remaining when scholarships, grants, and federal student loans arenat enough.
Yes, they can.