A Simple Guide on Private Student Loans

A Simple Guide on Private Student Loans  

Private student loans are mainly used to cover up additional cost other than the educational costs. The money that is lent for a private student loan solely depends on the lending agency. 

One must understand that federal student loans offer more than what a private student loan offers a student. So, one must first apply for the federal student loan.

Even after applying it the educational fees remains unfulfilled then one can opt for private student loan. The arousal of such loan category was due to two main reasons,

The rising college tuition fees 

Limited government's financial aid to cope up this fee.

This has caused the inability to the students to cope up with their college fee. 

Private student loans are gap-filling aids allowing students to borrow the extra money that is needed to fulfill their educational expenses other than those provided by the federal financial aid.

Benefits of Private Student Loan:

Interest rate is very low by 0.25% 

One can choose to have payments automatically deducted from the personal bank account 

A principal deduction of $300 is made on every private student loan when the student graduates. 

Defer payment while in school and for a six-month grace period after graduation. 

Upfront fees are nil.

Benefits of Cosigner:

Cosigner is the one who strengthens the approval of private college student loan to you. Cosigner can also lower your interest rates.

This would become a compulsory condition when one does not have 27 months of credit history. If one were greatly concerned about the approval of private students' loan then a cosigner would do a great work.

Eligibility Criteria to Apply For A Student's Loan:

Must be citizen of U.S. or be a permanent resident of US. In case where both conditions fail you may need a cosigner who is a permanent resident of US 

Must be enrolled at an eligible educational institution. 

You must have attained the legal majority age(least of 18 years of age mostly) along with a cosigner who is also a major.

Those who do not have a cosigner must have at least 27 months of credit history established. 

One's permanent resident must not be in Texas, Wisconsin, Washington, Illinois, or Iowa. Residents belonging to these states must apply for an alternative student loan. 

Cosigners may belong to any state and there is no restriction based on state.

Application Process:

Submit your application 

You will receive an immediate credit decision. 

Add a cosigner who is credit worthy to your loan application, though you may be conditionally approved. 

Submit the required documentation. Sign the promissory note and submit it along with the documentation. 

Loan would be sanctioned within 10 days mostly if all the documentation were correct and legal. 

Deadlines: Private student loan does not have any deadline it can be applied at any time, provided the eligibility criterion is met. 

Fees would be based on credit history, repayment, and origination. The charge can range from 4.5% to 5.5% of the original loan amount depending on the agency. This would be assessed at the time of repayment. 

Interest rates depend on the cosigner credit history. 

Repayment term would vary from fifteen to twenty-five years.

You could get a private student loan from $1,000 to $40,000 per year for items such as:

Tuition 

Room and board 

Computer or travel 

All other education-related expenses including previous school fees

Features

Affordable monthly payments 

Competitive rates and terms 

Easy hassle-free online application 

Benefits

Repay after graduation 

Funds sent to you - fast 

Easy to apply online or by phone for your loan 

Other Specifications:

$40,000 annual limit for Undergraduate/Career Education and Graduate/Professional student loans based on cost of attendance at the school and borrower's credit ability. Chase offers convenient education financing with flexible loan amounts from $1,000 to $40,000 with an aggregate maximum of $150,000. 

Subject to verification of application information. 

You may need a co-signer since this is a credit-based loan. 

Interest continues to accrue during deferment and will be added to the principal balance of your loan upon entering repayment.

NextStudent Private Student Loans

Cover up to 100% of your college costs.

Get the money you need for college or grad school. With a NextStudent Private Loan, you can cover up to 100% of your higher education expenses. Get from $3,000 up to $45,000* a year to pay for those college and grad school expenses that your scholarships and federal financial aid didn't cover.

Get the money you need when your financial aid isn't enough.

If your scholarships, grants, and federal student loans don't cover the total cost of your education, you can still get the money you need for school. Our private student loans are available to undergrads and graduate students for tuition and fees, room and board, and your other education-related expenses: books, supplies, your trips home, even a laptop.

Check out all the benefits that come with your NextStudent Private Loan. 

No FAFSA required 

No application or origination fees - apply FREE 

No payments due until after graduation? 

Competitive interest rates and fees 

Your interest only capitalizes once, not quarterly like with other lenders 

Your check comes straight to YOU, not your school? 

Take advantage of borrower rewards.

Graduating from college is a huge accomplishment.

Apply with a creditworthy co-signer, and you may qualify for a lower rate 

Take $300 off your principal loan amount when you graduate (with proof of graduation) 

Get an immediate 0.25% rate discount just for signing up for automatic monthly payments 

Make your first 48 consecutive payments on time, and you can request to release your co-signer (you'll need to meet the loan credit requirements at the time of request) 

Apply today - it's fast, easy, and FREE. 

They specify that their private student loans have NO application deadlines or fees. Apply for your NextStudent Private Loan any time - at the beginning of the school year, mid-semester, or right before finals. Get the money you need for school when you need it. Apply now, and you could have a preliminary approval today!

Thus, we have reviews some of the student's loan providing agencies and the methods to apply for a student's loan. This is going to be quite easy with good work plan and foreseen thoughts. One could get maximum benefit through these students loan when utilized in the right way. Start your plan now.