Private Education Loans

What are Private Education Loans?

Private education loans are a special type of loan designed for students who are finding it hard to keep up with the rising cost of college. Private education loans offer a quick and easy way for students – and parents – to cover college tuition and living expenses. Most students prefer private educational loans for a few simple reasons. First and foremost¸ there are countless private educational loans available through hundreds of private financial institutions¸ as compared to a handful of education grants or government loans. Secondly¸ a large percentage of grants or government loans cover only a portion of the tuition¸ or in the best case just cover the complete cost of tuition¸ leaving students on their own when it comes to books and study materials¸ food¸ clothes and other expenses. A private educational loan¸ on the other hand¸ allows students to borrow as much money as they need to cover the cost of college¸ and comfortably meet all other expenses.

 

Why Should I Get Private Educational Loans and How do I apply?

Private education loans are available through a number of lenders. As compared to other types of loans¸ private educational loans have low interest rates¸ usually between four and six percent. This makes it much easier for students to pay the money back once they have graduated and obtained jobs. Furthermore¸ the best private education loans offer flexibility when it comes to borrowing limits and repayment options. While repayment on private educational loans usually starts after graduation¸ students can defer payment if they cannot find work¸ or do not make enough to keep up with monthly payments. Private education loan consolidation allows students to combine all of their loans¸ resulting in an extended repayment period and much lower monthly payments. The application process for private education loans is simple – all students have to do is fill out a FAFSA¸ which can be submitted online. Once approval is obtained¸ funds are transferred in a few hours or a couple of days either directly to the student or to the school where the student is enrolled.