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Uncle Sam’s greatest gift to the American student is the federal student loan program that makes it possible for millions of young Americans to pursue higher education. But federal student loans can’t always cover tuition and expenses 100%. This is why so many parents and students turn to private student loans to fill the gap.
Private Student Loans — Not Just For Tuition!
All the talk these days is about the high cost of college tuition. But what’s often overlooked are all of the other college expenses that can make going to college even more financially crushing.
However, this may not be a problem for you since most private loans can cover almost all college expenses, including: 0 Room and Board 0 Off-Campus Housing 0 Registration Fee 0 Textbooks 0 Laptop/Internet Access from classes
How Can You Qualify For A Personal Loan?
Because personal loans are made by private institutions such as a bank or other private lending institution, your ability to obtain a loan will be based on merit, especially good credit, essentially, a high enough credit score. Having a co-signer with good credit is even better from the lender’s point of view as your combined chances of repaying the loan are higher considering the co-signer’s good credit. Hence, you may be more likely to be approved for a personal loan by the lender.
If you think about it, most consumer loans require collateral, such as a home or car. If a borrower doesn’t pay back the loan, the lender can repossess your property so it can sell it to recover the money it lent.
There is virtually no collateral in case of education loan; ie, how can a lender take back your education? This can not happen. This is why lenders rely on a good credit record, as it is a strong indicator that you and/or your co-signer have a proven track record of repaying your credit card or other loans in a timely and responsible manner. Is.
Co-signers with good credit can help you qualify for a personal loan, lower your borrowing costs and improve your own credit score!
Because personal loans are merit-based, the rate you receive is based on your credit history and income. If you don’t have one or the other or both, a creditable co-signer can be invaluable. In fact, a co-signer with good credit can help you get a personal loan at a lower interest rate, saving you a lot of money over the term of the loan.
Another added benefit of a creditable co-signer is “guilt by association but in a good way”. This means that timely, responsible repayment of your personal loan under a co-signer arrangement will be a positive way to build your credit record.
Avail Personal Loan Benefits
Of course the primary purpose of getting a student loan is to help you get a good education so that you can realize your career aspirations. And it’s important to use credit wisely. That’s why you are encouraged to get as many federal student aid, grants, and scholarships as possible before applying for private loans.
Personal Loan Application Process — Get pre-approved in minutes if you qualify!
However, once you have determined that a private student loan may be a viable alternative funding source to cover your education finance gap, you will need to pre-qualify for a private loan within minutes of applying. Can be approved! Many times the application process is very simple and with most lenders, it can even be handled over the phone or online.
Long prepayment terms and no prepayment penalty can help you manage your cash flow better after college
When it comes to paying off your personal loans, many lenders give you up to 20 or even 25 years to do so. The absence of pre-payment penalty means that you can pay off your loan as fast or as slow as you want within your repayment tenure, as long as you make your minimum monthly payments.
Interest rate rebates can help lower your personal loan borrowing costs even further!
Many private lenders will want to do your business. So be sure to shop around, and ask each lender about these and other personal loan “borrower benefits” such as:
o Discounted interest rate for automatic payments from a savings or checking account
o Rebate on interest rate only for timely payment.
o Low or no origination fee if you or your co-signer have good credit
Who is Eligible for Personal Loan?
Keep in mind that each private lender has certain eligibility requirements. For most private student loans, you must meet the following criteria:
Must be a credit eligible applicant or a credit eligible co-borrower
– Must be a US citizen, US permanent resident, or international student with an eligible US citizen or US permanent resident co-signer
– Must be within the age of majority by your state of residence (usually 18 years of age)
– Can be a full-time, half-time, or less than half-time (including continuing education) student
Types of Personal Loans
The good thing about private loans is that many lenders have a variety of loan types to suit your specific course of study. The loan name, minimum and maximum loan amounts, and loan repayment terms are all tailored to the specific requirements of the course of study you choose.
graduate personal loan – As the name suggests, apply for an undergraduate personal loan if you are a college undergraduate, or attending a career, technical and trade school in the US at least half-time. continuing education private loan This personal loan is right for you if you are completing a degree, a certification program or taking classes to further your career or personal development. A continuing education private loan is available to you if you attend an eligible school at least part-time (less than half-time). Graduation / Professional Personal Loan – If you have decided to pursue an advanced degree at one of the participating colleges and universities, and plan to attend at least half-time, this private loan can provide you with the funds you need to achieve your educational goals can get K-12 Education Private Loan – If you are a parent or other adult sponsor (relative or friend) of children who attend participating non-public elementary schools, many lenders offer these loans to help cover the costs. Most lenders offer K-12 education private loans to students attending private, religious, preparatory, and military or special education schools.
Need more money to pay for college? Personal Loans Are Here For You!
Now that you’ve learned about alternative ways to pay for your college-related expenses, don’t let anything hold you back from pursuing your dreams of success. A great education is a wonderful thing and nothing should ever come in the way of achieving your goals.
As you begin or continue your education, availability of personal loan Provides you with an option to raise funds for your education when you do not know where else to turn for the funds you need.
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