How can you get private student loans? Getting a private student loan is a fairly easy process, and there are many different lenders out there for you to choose from. Basically getting a student loan from a private company is a lot like getting any other type of private loan, and you will go through mostly the same type of process that you will in getting any other type of student loans. While getting private student loans are usually easier than other types of loans, there are some downsides of getting student loans privately.
When you get a private loan, you should be advised that you cannot consolidate the loan in the future. Consolidating your loans means that you take all of your student loans and combine them into one payment. The one payment eliminates redundancies among the many payments, and eliminates some of the interest that you are paying on the loans. Only federal loans can be consolidated, and only federal loans are eligible for any type of government reprieve.
Another thing to keep in mind about student loans is that you cannot default on them. Bankruptcy will not wash them away, so be ready to pay them off when you graduate from college.
Getting a private student loan is similar to getting other loans. You will need to provide some sort of documentation about your income, and most of the time you will be asked to provide a co-signer. This happens so that if you cannot make a payment someone else will be there to make that payment for you. Unless you are an adult student, or have a lot of money tucked away, you will need to have a parent or someone else co-sign for you.
To get a private student loan, you must prove that you are actually going to school. The lender will contact the college to verify that you are going to the school, and that you are enrolled in the college for the semester. The lender will also verify the amount of the loan that you are requesting, and will not approve the loan if you ask for more than what college actually costs. At best they will modify the loan to what you actually need, and won’t usually provide for books or other costs.
Private student loans are the same as other student loans as they are not due for repayment until after you graduate. You may choose to pay over time, but you are not required to. The interest on the loans will keep accruing, and you will have to pay that off when you graduate. I would recommend that you pay as much as you can, or at least make the interest payments if you can. That will help when you start repaying the loans.
Private student loans are pretty easy to get. Just be in school, and have a willing co-signer and you should be good to go. Shop around for good rates, and make sure that the lender you choose is a reputable one that will actually be able to make good loans. Don’t just pick a company that you find on-line, and always make sure you feel comfortable with the terms of the loan.