Being a student is understandably difficult for many reasons: you have to study all the time, you have to think about your future career and all those debts you had to undergo for the university fees. Admittedly, college loans are stressful because you are constantly worrying about them. There are few options for loans that you can use for your school expenses. One of them is a private student loan, and we are going to discuss options further into this article. Student loans are very usual for the students who want to study but can’t afford the annual prices. If you are going to ask for a student loan, it is important to know all your options before making the final decision. There is a federal and private student loan available. If the federal student loan is not enough for you, you can apply.
How to apply
A private student loan is a bit different from other student loans, as they require a complete process of underwriting. You have to have good credit and an additional cash reserve for lenders to accept you as a borrower. If you don’t qualify for the requirements, you will need a co-signer.
Multiple lenders offer private student loan; such as banks, credit unions, etc. Citizens Bank, Discover, Sallie Mae, Wells Fargo are the few examples of private student lenders. Some start-up companies offer loans as well, including CommonBond, College Ave and SoFi. If you are out of options, you might consider those options too.
The options are a lot, and they can be confusing. Make sure you have compared the interest rates, borrower protections, and prices before you decide on a lender.
College Ave
College Ave is one of the private loan options. There are many benefits to College Ave that we are going to talk about. First of all, there is no application fee, which is a good starter. There are student and parent loan options that you can benefit from. The repayment options begin at five years, and it’s available for up to 15 years. Both bachelor and master degree students can apply for College Ave loans/
They are also offering an interest-rate reduction if you establish the automatic payment system with them. Both fixed and variable rates are possible for the students and parents.
You can either pay while you are in school or you can make deferral payments after you graduate, which is a good option for students who can’t afford to pay back while they are still studying.
If you haven’t thought about your repayment plans yet, check this out to learn more.
LendKey
Lendkey is an online platform which allows its customers to apply for a private student loan and offer other services as well. Even though they facilitate the loans, they are funded by community bank and credit unions, which makes them suggest low rates.
Lendkey also doesn’t charge for application or origination fees. You can get the interest rate reduction if you have automatic payments set up with them. Students can make monthly payments or have an option of paying $25 each month while they are in school.
After five years of $25 per month option, you can choose the repayment for ten years. You can check your eligibility for the private student loan, if you are eligible don’t hesitate to start the application process.
Common Bond
Common Bond is a loan lender which finances college students with loans for higher education. It offers in-school student loans to MBA students for more than twenty academic programs in the USA. This lender company was launched in the autumn of 2013.
CommonBond lender company was founded in 2011 and launched in 2013. It is a marketplace lender that offers loans for undergraduate and graduate students as well as in-school loans for MBA students.
Unlike the other two option, CommonBond has 2 percent origination fee, but they don’t charger for the application. There is also no payment required if you decide to pay off the loan early. Interest-rate reduction policy applies here as well.
You can check your private loan options with us if you can’t decide which option is the most beneficial for you.
Citizen Banks
Citizen Banks is an American bank located in Rhode Island. It was founded in 1828 and had been operating for more than a century. Today they have more than 1200 branch offices and 3200 ATMs in 11 states.
Citizens Bank doesn’t charge for application or origination fee, and they don’t require you to pay anything if you are paying off early. You should consider having an account with them because you can get an interest rate reduction. They also offer private student loan options for both students and parents. Both graduates and undergraduates are encouraged to apply. Based on your degree, you can get loans from a thousand dollar up to nearly 300 hundred thousand dollars. Students have 5,10 or 15 years repayments options while parents have 5 to 10.
If you want your application to get accepted you need to have good credit or a qualified co-signer. Creditworthiness is the number one requirement for the co-signer.
Sallie Mae
SLM corporation or Sallie Mae is a publicly traded corporation in the US which offers consumer banking services. The nature of the corporation has changed a lot since it was founded in 1973. Sallie Mae operates in Delaware, Us. They are mostly known for suggesting private education loans options. Formerly they also had the federal loan option.
As well as the others, Sallie Mae also offers no charge for origination or application fee. There is no fee for early pay-off. If you have an automatic set up with Sallie Mae, you can use the interest rate reduction. The private loan options are available for everyone; undergraduate and graduate students, parents, K-12 education, MBA students, career training courses, medical and dental schools. You can apply for loans starting from $ 1000 up to 100 percent. There are deferred, fixed or interest-only repayment choices. You can either start paying while you.
The maximum rate is lower for graduate students rather than undergraduate students. There is a 120 minutes free tutoring available through Chegg. You can apply for co-signer after graduation.
To conclude with
Student loans are stressful, but if you know how to use them wisely, you can get the great benefit of them. Have a clear understanding of your options and loan repayment processes. Education is essential, and there are a lot of credit unions, banks or some companies that willing to invest in education. If you have any questions or need any counsel regarding the private loan options, don’t forget to give us a call or write to us!
When you contemplate about which type of student loan to apply, keep in mind that every kind of student loans has different advantages and disadvantages. A private student loan can be a great help to you, but remember, they start adding the interest rates at once. Private loans with a co-signer as well because they work on the principle of creditworthiness. Once your application gets approved, don’t forget to make your payments regularly. Because if they have any problem with you, your co-signer will hold responsible as much as you.
