Private student loans can give you a real advantage because they can be used to help you cover those other costs that may not be covered under the normal type of student loans.
A rule of thumb is to firstly apply for the government loans that are available and then use these private loans as a top up solution.
The reason that many of these private loans are available was because it was found that there is need to fill those gaps that the normal government type loans missed out.
Private Student Loans – Benefits
Very low interest rates
Flexibility of payments
Ability to arrange for automatic deductions of loan payments.
Chance of getting substantial discounted loan rates
Deferred payment options can be available.
No upfront fees and charges
Cosigner s are people who can strengthen the approval rating of loans that you apply for.
Having a cosigner can also help to reduce your interest rate.
Under normal conditions you must be a f U.S. citizen a permanent resident
You have to be enrolled at an eligible educational institution.
You must be of legal age.
If you don’t have a cosigner then it is advisable to have at least 24 months of established credit history.
Certain conditions may also apply to your place of residence, check each institution for these conditions.
Cosigners may belong to any state and there is no restriction based on state.
The first thing you need to do is to submit the application, make sure that all the required paperwork is in order. Make a checklist of things that you are required to submit, this will make it easier and also act as a method to double check if you have all the right documents.
Normally you will have an instant ‘yes or no’ decision, the approval process can sometimes be earlier. You can expect a result within 10 to 14 days.
It is advisable that your cosigner is of high standing and has a good credit score. This will help in getting your application through quicker.
When you then submit your documentation.
The fees that are normally charged are industry standard fees and do not vary much between institutions. Your fee structure will be determined during the application process. These fees will also change slightly depending on your own credit score.
Your repayment schedule can vary from fifteen to twenty years.
I hope this private student loans guide has been of help, good luck with your studies.