Many times, you don't have sufficient money to pay for school and the cost of living by only using federal student loans. Private student loans supplement the income you receive from federal student loans and can be deferred while you attend school. Private student loan lenders encourage students to use all federal student loan options before turning to the private market. Private college loans are an effective way to pay for school while you are attending classes and consolidate your student debt after graduation. We recommend using SoFi, Citizens Bank and Wells Fargo for your private student loan lender. We also have articles about student loans to provide you with further information.
There have been many changes in the student loan industry over the past few years. In the past, when you would start the federal student loan process, you would approach your school, fill out a FAFSA and indicate what institution you wished to house your federal student debt. Now the government has decided to house Stafford, Plus and Direct loans within the U.S. Department of Education. The government then contracted out the service of these federal student loans to different private companies.
Whenever you are taking on debt, it is important to find the best borrowing programs. When you are determining what lender to use as your private student loan lender, we recommend you research what loan types they offer, features that the lender provides, how the repayment of your college loans works, and what help and support the companies provide you.
With the changes in the student loan industry, you should be looking for a private student loan lender that offers a wide variety of loan options. Most student lenders will offer personal loans for college students that are obtaining their undergraduate or post-graduate degrees. The loan limits for graduate programs are different depending on what degree you are trying to obtain. You should also look for a lender that provides consolidation student loans. These student consolidation loans are an excellent way of combining private and federal student loans into a singular loan amount with a lower monthly payment and interest rate.
You should be looking for a student loan company that offers both fixed-rate and variable-rate loans. Fixed-rate college loans are excellent if you prefer to know your payment amount long-term and don't want to risk an escalation in interest rates. Variable-rate student loans are currently more competitive, with most base APRs being half of what fixed-rate private student loans charge. If you decide to go the variable-rate student loan route, then investigate the APR cap for those loans that tell you the maximum APR lenders can charge you.
Try to find a student loan lender that offers rate reductions, as that will save you money over the life of your borrowing. Most reputable private student loan companies don’t charge application, origination or early termination fees. If your lender provides a cost calculator, then take advantage of it to help you budget your resources better and avoid excessive student debt.
Most student loan companies offer a six-month grace period after you graduate. Interest will continue to accrue on your loan, but you shouldn't have to start making monthly payments during that period. Look for a student loan lender that offers a variety of terms so that you can more effectively repay your student debt with the least amount of interest payments. You should be looking for a private college loan lender that offers automatic payments and provides you with some kind of rate-reduction offer when you establish automatic monthly debits to your account.
Help & Support
Many technical questions arise when you are considering your student loan options. Finding a private student loan lender that offers a variety of support options will make things easier for you. Most companies offer phone support and a FAQs section on their website. Better private college loan companies have email support and educational information for you on their website. The best college loan companies provide live chat to quickly answer questions while you are looking at the information on the company's website.
You should try to find a student loan lender that saves you money and makes repayment a simple process. Remember, if you have good credit and a steady income, you shouldn't settle for anything less than the best private student loan program.
*All APR rates are based upon the time that the site was published.