Private Student Loans - Dispelling The Myths
By Vanessa McHooley, Thu Dec 8th
Private Student – dispelling the myths If savings, grants,scholarships, and federal don’t cover the cost of youreducation, it’s time to turn to private loans. But young collegestudents can’t qualify for a private loan, can they? Wrong! Thisarticle addresses this and other myths about student thatyou may run into. I don’t have any collateral, so I can’t get a private loan.Private are usually unsecured, which means no collateralis required. On the downside, this may also mean a higherinterest rate. I don’t have a good credit history (or no credit history at all)Since the government doesn’t back private loans, your credithistory is a consideration in being approved for a loan. If yourcredit history is bad or non-existent, you may be subject to ahigher interest rate. And remember, you can always get aco-signer. Pay your loan off on time, and soon you will have agood credit history!
I have enough funds for tuition and fees, so I can’t get aprivate loan In addition to paying tuition and fees, funds fromprivate can be used to cover living expenses, supplies,computers, and other everyday living needs. I can’t afford to make payments on a loan while I am still inschool For most loans, your principal and interest payments canbe deferred while you are enrolled in school. Another option isto make interest payments while you are in school but deferpaying off the principal. Your interest payments might even betax-deductible! I missed the deadline for applying for financial aid this yearYou can apply for private student any time – there is nodeadline. Depending on the financial institution you choose, youcan be pre-approved in minutes and have the money (which will besent directly to you) within a matter of days. I don’t have a bank to apply through Private are offeredby thousands of banks, credit unions, and other financialinstitutions.
It?s July 23rd, Do you know where your loans are?
Did you know that because nearly all private student loans have variable APRs, your interest rate could have changed several times in the past 2 years?<img src="http://feeds.feedburner.com/~r/StudentLoanConsolidationHotTopics/~4/W35fIg6RTdE" height="1" width="1"/>
Confused about reform and consolidation?
If you’ve heard the word about the reform currently in progress across the country, you probably are aware of the end of the FFEL program and exclusive federal consolidation returning to the Department of Education. If not, read this page on upcoming changes to get acclimated.
One question we get a lot is, “If FFEL is [...]<img src="http://feeds.feedburner.com/~r/StudentLoanConsolidationHotTopics/~4/gtij4UUkuQQ" height="1" width="1"/>
New Grads, Start Thinking About Consolidation
Consolidation has two main benefits that can be of enormous financial help to you both in the present and the future: the improvement of your credit rating and lower net monthly payments.<img src="http://feeds.feedburner.com/~r/StudentLoanConsolidationHotTopics/~4/IRMnvwwn14w" height="1" width="1"/>
What NOT to do when Consolidating your Student Loans
There are a great many benefits to consolidating your student loans, such as the convenience of making one or two monthly payments as opposed to six or seven, the lower monthly payment. But there are some cases where you have to be careful.<img src="http://feeds.feedburner.com/~r/StudentLoanConsolidationHotTopics/~4/hVsxcx5MHFg" height="1" width="1"/>
Graduating? Consider student loan consolidation.
Depending on the amount (and type) of loans you took out for school and the repayment plan you selected, the monthly payments may still be out of your reach by the end of your grace period.<img src="http://feeds.feedburner.com/~r/StudentLoanConsolidationHotTopics/~4/TfWhN3LYYvM" height="1" width="1"/>
Should I Consolidate my Private Student Loans?
Federal student loan consolidation is fast, easy, free and highly recommended to lower your monthly payment. Private student loan consolidation is a bit trickier. Here are some notes to remember if you choose to go down this road.<img src="http://feeds.feedburner.com/~r/StudentLoanConsolidationHotTopics/~4/pI-n1mZXjYQ" height="1" width="1"/>
How to Get Your Student Loans Forgiven
Imagine waking up tomorrow and discovering you don't need to pay back your federal Stafford, PLUS and Perkins loans. For many Americans, that dream is a reality, thanks to a number of programs that allow you to have some, if not all, of your loans forgiven.<img src="http://feeds.feedburner.com/~r/StudentLoanConsolidationHotTopics/~4/_jiatW1gU4M" height="1" width="1"/>
From Our Forums: Consolidation Question Quartet!
There was a great question in our loan consolidation forum this week from a new user with lots of loans from medical school. James recently finished his Master’s degree as a physician assistant (congratulations!) and wrote to us looking for some consolidation advice:
I have the following types of federal loans:
Subsidized Stafford
Unsubsidized Stafford
Grad PLUS
Previously consolidated federal [...]<img src="http://feeds.feedburner.com/~r/StudentLoanConsolidationHotTopics/~4/VhRoT8EQlBg" height="1" width="1"/>
Have a Consolidation Question?
If you aren’t already familiar with our Financial Aid Forum, it is an awesome resource for answering questions about virtually every kind of financial aid or loan a student can take out toward their education.
We have three dedicated Student Advocates (myself included) that are available Monday-Friday to help out and an informed user base of [...]<img src="http://feeds.feedburner.com/~r/StudentLoanConsolidationHotTopics/~4/fVbQFYIEPhQ" height="1" width="1"/>
Did you know you can get IBR on a Federal Loan Consolidation?
It’s true! If you are unfamiliar with Income Based Repayment (IBR), I would recommend reading my blog and then consulting the Student Loan Network’s handy payment estimator chart under the new repayment plan.
Why is IBR better than the normal plan?
There are a couple reasons why. First, IBR takes your income into account when it computes [...]<img src="http://feeds.feedburner.com/~r/StudentLoanConsolidationHotTopics/~4/2ZG78P0peWg" height="1" width="1"/>
Just search the internet for “private studentloans” and you will find many places to apply to. If you need the additional funds provided by private loans,don’t let myths and misconceptions keep you from applying! This article is distributed by NextStudent. At NextStudent, webelieve that getting an education is the best investment you canmake, and we're dedicated to helping you pursue your educationdreams by making college funding as easy as possible. We inviteyou to learn more about Private Student athttp://www.NextStudent.com . About the author:My goal is to help every student succeed - education is one ofhte most important things a person can have, so I have made itmy personal mission to help every student pay for theireducation. Aside from that, I am just a pretty average girl fromSD. http://www.nextstudent.com/ |
