Student loans emerged towards the end of the 20th century. It was designed to aid students, to offer them a wide range of opportunity to continue their studies and drive the economic force in the US. Since the loan seemed feasible for the government administration, private student loans applied and the number of chances increased for affordable loans. It is almost crucial for every student to be paid for their academic activity. There are several types of private loans, and what makes private student loans attractive is their terms and conditions. They are different from Federal loans with requiring a cosigner, one responsible person to pay instead of you, in case you avoid to pay in the future. Choosing of cosigner happens in two stages. First, they should be a financially secure and close person to you, parent or relative.
Do you need to take a private student loan?
Students with undergraduate and graduate degree need to finance their degrees. The scholarships provided by the university or self-benefitted companies are scarce, and not everybody is eligible for those options. In addition, if you have a project that you think will be helpful to society, but you do not have money you can benefit from loans. Entrepreneurs, for example, want to introduce “breakthrough” ideas and build a business. There are social funding opportunities around, but if your state or self- representation ability is weaker than others, you will not be selected. Here, private student loans come into play.
Types of private student loans
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Credible
It is not a lender itself, instead, it is a platform to meet lenders and undergraduate and graduate students. First, you enter your data to the system. It checks your eligibility in accordance with lenders criteria. If they can find lenders that suits with your priority, then they send you a list. Your information is in secure hands, and it is not shared with lenders. In the next stage, you receive names of lenders and see their requirements. One great characteristic of the Credible is that via Credible you can apply for 8 different lenders for saving up money and time. Famous lenders provided by Credible are Citizens Bank, College Ave, Sallie Mae, EDvestinU, and many more prestigious companies. The lowest interest rate is 3.47 percent.
Moreover, the companies which provide money for your studies can wait for the money for up to 20 years. Lowest payback time is 5 years which is I think enough for average American who has a secure job. The company named ELFI introduce the lowest interest rate 2.8%, in case you agreed to pay with flexible terms. The company draws a roadmap for you to track your payment history.
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Sallie Mae
Sallie Mae is the second on our list which is considered as the best option if you are willing to pay with flexible terms. It is the biggest private student loan option in the market and its popularity far more than the second place holder. It is a company supplies loans, and even have loan offers for parents who want to send their kid to the school. Unlike others, Sallie Mae does not require prepayment. The application process takes 15 mins and so simple that even schoolchild can process it.
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College Ave
The private student loan can benefit to bachelors, masters, and parents. Like the Sallie Mae, no prepayment is required. They offer two kinds of loans, fixed and flexible. For fixed loans, the lowest rate is 5.28, and for flexible 3.94 percent. Payback time varies between five and fifteen years. College Ave is a free lender and all financial transactions happen through the organization only.
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Citizens Bank
Early service of the Citizen Bank covered another financial aid, like loans, debts and similar works. Their student loan offers
- Funding for all four years of bachelor study
- Changeable repayment opportunities
- Average fee savings up to $640
Eligibility criteria for the Citizen Bank private student loan:
- The US citizens or foreigners with a residence permit
- If you are a newly accepted to the university, you can only apply after January
- Faculty standing should be good or excellent
- Should provide the name of the cosigner and your annual income, as well as expected graduation date. More information has been stated on the official website, from where you can apply and learn about conditions.
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CommonBond
Aside from private student loans, the company offers many services like planning and organizing social projects. It is almost only a lender provides the money with the help of businesses. In that case, the employers help students to pay their tuition fees. The bank requires two percent of the lend as a starting fee. Interest rates are low and the borrow can be paid between 5 to 15 years. The organization facilitates money getting the process for students. From underground to master and Ph.D. results in different financing options present and Common Bond.
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Discover
Above I mentioned that if you are a liable student with having a high GPA at the university. It provides money for all types of cardholders and the race for the loan is competitive. Loads should be paid back around 15 - 20 years with low or no interest rates. Unlike, other options the Discover will not charge you for late money. Facilitating easy conditions for students made to create a service without even an application process. Borrower GPA should be higher than 3.0 out of 4.0.
In their website Discover introduce a variety of private student loans. For Undergraduate degree students, they offer 4.49 interest rate and the only reward for this is performing well at the university. Graduate degree student would benefit from the law, health, MBA loans. Applying for MBA private student loans takes 15 minutes. You should secure that the cosigner will pay your debts to the center.
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Ascend
The ascend does not require any co-signer. To be honest, ascend is not well - known. That’s why their targets are affecting more customers than rival companies.
Ascend has a private student loan which is basically similar to the options mentioned above. The interest rate is a little higher for this firm and payback time is between 5 - 15 years.
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Lendkey
Lendkey is a contractor organization which joints two parties, students and banks. Parental loans are not provided by this fund. The rules are a little bit static, such as you cannot pay before graduating and parent loans are not allowed. Average interest rates have been suggested by this fund and units who pay money try to offer more affordable options for students.
Those are the most known and leaders of private student loan organization. It is helpful to denote that private student loans are different than Federal loans which are paid as a compromise. The Banks and some fundings earn enough are really curious about this topic. Because the student will work after graduation and earn money. For the banks, it is an ability to have real worker numbers.
