It is almost time for the new school year! Depending on which term you have decided to start in, you may already have your college financial situation already taken care of. If you are still figuring that out, keep private student loans in mind. Private student loans can be helpful once you have already borrowed the maximum amount of both subsidized and unsubsidized federal student loans.
Private student loans do require a credit check. Most college-aged students need a co-signer in order to qualify and be approved. One caveat is that most private student loans will be more expensive than federal loans. The huge perk of a private student loan is the repayment options are incredibly flexible.
When deciding how much of a repayment you can handle, be mindful of how much money you will make your first year out of college. By being mindful in this manner, you will not be putting yourself into a bad financial situation your first year out of college. Most private student loan lenders will not put a maximum amount of money you can borrow each year. (Some lenders do have a cap on how much money can be borrowed.)
Just like any loan, be sure to also find out what the interest rate will be and any particular terms for your co-signer, if you plan to have one. Also keep in mind to find out how the private lender plans to disburse the funds to you or your school. If you do have a co-signer, make sure that they are aware of every part of the decision making process and if a private student loan is the best option for you.
Something else we want to bring your attention to and remind you to think about is what your lender offers if you cannot afford your payment for any reason. It is important to know what your options are if this is the case for any reasons.
We would be happy to help answer any question you might have when it comes to private student loans.