Aid Step 5: Financial Aid Options

— Private Student Loans —

 

Many government programs and loans do not cover the full cost of education

So many students are turning to private student loans to make up the difference between total cost of school and any financial aid you may receive.

Private Student Loans are offered by financial institutions, educational institutions, and professional associations. They are not guaranteed by the government so the interest rate and origination costs may be higher.

The advantage of Private Student loans is that loan amounts are not tied to any federal or college limits —

You can borrow as much as you need up to the approved loan limit.

In addition, the funds can be used for any education-related expenses, including a new personal computer for school use.

Rates and origination costs are tied to the applicant's credit history.

The better your credit history (as a student and likely with a CO-applicant such as your parent), the lower the rate and costs.

You need to consider the lending terms of private loans — borrowing money comes with fiscal responsibilities. Inability to follow repayment terms can affect your credit rating, making it more difficult to borrow in the future.

For information about the SayStudent Private Education Loan:

Private Student Loans: review eligibility requirements and funding limits