Private Student Loans – ... the mythsIf savings, grants, ... and federal loans don’t cover the cost of your ... it’s time to turn to private loans. But young college students c
Private Student Loans – dispelling the myths
If savings, grants, scholarships, and federal loans don’t cover the cost of your education, it’s time to turn to private loans. But young college students can’t qualify for a private loan, can they? Wrong! This article addresses this and other myths about student loans that you may run into.
I don’t have any collateral, so I can’t get a private loan.
Private loans are usually unsecured, which means no collateral is required. On the downside, this may also mean a higher interest rate.
I don’t have a good credit history (or no credit history at all)
Since the government doesn’t back private loans, your credit history is a consideration in being approved for a loan. If your credit history is bad or non-existent, you may be subject to a higher interest rate. And remember, you can always get a co-signer. Pay your loan off on time, and soon you will have a good credit history!
I have enough funds for tuition and fees, so I can’t get a private loan
In addition to paying tuition and fees, funds from private loans can be used to cover living expenses, supplies, computers, and other everyday living needs.
I can’t afford to make payments on a loan while I am still in school
For most loans, your principal and interest payments can be deferred while you are enrolled in school. Another option is to make interest payments while you are in school but defer paying off the principal. Your interest payments might even be tax-deductible!
I missed the deadline for applying for financial aid this year
You can apply for private student loans any time – there is no deadline. Depending on the financial institution you choose, you can be pre-approved in minutes and have the money (which will be sent directly to you) within a matter of days.
I don’t have a bank to apply through
Private loans are offered by thousands of banks, credit unions, and other financial institutions. Just search the internet for “private student loans” and you will find many places to apply to.
If you need the additional funds provided by private loans, don’t let myths and misconceptions keep you from applying!
This article is distributed by NextStudent. At NextStudent, we believe that getting an education is the best investment you can make, and we're dedicated to helping you pursue your education dreams by making college funding as easy as possible. We invite you to learn more about Private Student Loans at http://www.NextStudent.com .
How to Search for Scholarships
Finding scholarships for college or a major university is a lot like picking an actual college. It is not an easy process or something that just happens overnight, but rather, it takes hard work, dedication, and a lot of research to find the scholarship opportunities that are best for you. On the one hand, you are putting a lot of time, work, and effort into finding a scholarship. But just think about the thousands of dollars that you can save by obtaining a scholarship for college.
Parent Loans
If you are entering college soon, but have no idea how you are going to pay for anything from books to your actual tuition fees, chances are that you are going to be relying upon your parents in some way, shape, or form. For most first-time college undergraduates, college or university tuition is either paid through grants, because parents’ financial information allows the use of grants, scholarships, because of academic or athletic prowess, or loans, because students can not pay for college or a university outright.
No-Cost Student Loan Consolidation
A no-cost student loan consolidation – doesn’t that just sound too good to be true? Think about it. You have just accrued thousands of dollars in debt through student loans after 4 years of college, or possibly even more. Then, a company offers to take all of your loans off of your hands, put them into one central loan, and do it all for free! Well, while it might not be too good to be true, it all depends around your particular situation, which could make this a “free” process, or could still work out to the benefit of the consolidation company that you are working with throughout the process.
