Category: Private Student Loans

Not all student loans are the same. In fact, there are some key differences between federal and private student loans. In this section, we’ll help you understand everything you need to know about private student loans, including repayment terms and other factors that often separate them from federal student loans.

Unique New Lenders and Their Innovative Options
Comments Off on Unique New Lenders and Their Innovative Options

There’s been big news in the student loan-isphere this week, ladies and gents. According to Forbes.com, there are a lot of changes happening with student loan lenders. The number of lenders has been skyrocketing due to the introduction of student loan refinancing a few years back, and the increase in lenders has lead to an increase in options. Borrowers now have more options when it comes to repayment, eligibility for loans, forbearance, and deferment than ever before.

Continue Reading…

How to Remove a Cosigner From a Student Loan
Comments Off on How to Remove a Cosigner From a Student Loan

With the rising cost of college tuition, more students are turning to private student loans to help bridge the gap between what is offered through financial aid and what they can pay out of pocket and their actual college costs.. Unfortunately, most young people have a limited credit and employment history, which means they will be unable to secure a private student loan on their own. In general, most lenders require students to have a credit-worthy cosigner before they will be approved for financing. This person doesn’t necessarily need to be related to the borrower (student), but parents and other family members often step up to help out. But, being a cosigner can be risky. If the borrower fails to make payments, the cosigner will be legally obligated to repay the debt. There may even be some risk for the borrower, as well. For example, should the cosigner die or file for bankruptcy before the loan is paid in full, the student loan servicer may place the loan in default and demand that the balance be paid in full, even if all payments have been made on time. Plus, removing a cosigner from a private student loan is not always an easy process. There are two primary ways a cosigner can be freed of their obligations under the promissory note they signed:

Continue Reading…

The Pros and Cons of Private Student Loans
Comments Off on The Pros and Cons of Private Student Loans

It’s that time of the year when high school seniors eagerly await their acceptance letters and parents nervously wonder how much college is going to cost them. Even those who may have put away some money through a 529 Plan or another college savings account may find that it’s simply not enough to cover all their expenses, even after they factor in federal financial aid and scholarships. When this happens, students and parents may need to make some tough decisions. They can look into schools that may cost less, such as community colleges or in-state public colleges, or they can consider another option – private student loans. But, before students and parents make the decision to take on additional student loan debt, they should take a close look at the pros and cons of applying for a private student loan.

Continue Reading…