Consider these features when researching private student loans.
Private student loan interest rates are fixed or variable and may be based on your credit history and other factors. Variable interest rates can change over time, so it is important to find a loan with a low interest rate, as well as an interest rate cap to control the cost over the life of the loan. It is important to remember that lowest advertised rates tend to be available for only the most creditworthy applicants.
Some private student loans require you to make monthly payments while in school and some allow you to defer payments until after graduation. Longer repayment periods require lower monthly payments, but you end up paying more in total over time. Be sure to choose a loan that provides flexibility so your monthly payments are manageable and the total cost of your loan is reasonable.
Most loans come with money-saving benefits such as interest rate reductions for automatic debit payments. Carefully read the terms and conditions to ensure that you will qualify for the advertised benefits and retain them throughout the life of the loan.
Choose a lender with experienced and well-trained customer service representatives that will have answers to your questions no matter where you are in the student loan process. Lenders offer a variety of ways to contact them and different hours of operation during which you can talk to a live person, so look for a lender you can reach conveniently.
Did You Know?
When comparing student loans, use the Annual Percentage Rate (APR) since it takes into account the interest rate, fees (if any), length of your deferment and repayment periods and how interest capitalizes. APR does not usually consider borrower benefits and loan discounts, so compare these features separately.
Learn the difference between subsidized and unsubsidized federal loans when you apply for a Federal Direct Loan, previously called a Direct Stafford Loan.
Find helpful information about the different federal student loan options for college. Compare federal and private loans and choose the loan that best fit your needs.
Learn how to avoid these common mistakes when filling out the FAFSA. Submitting an application the right way can help ensure you get the most money possible.
Learn more about the Federal Work-Study Program that provides part-time jobs to help students pay for their college education.
It helps to get organized when the time comes to pay your tuition. Discover Student Loans prepares you for what you need to know about paying college tuition.
Find out what options are available if college tuition is due but you don't have the money on hand. Examine your options to have a plan in place before tuition is due.
There are options if you have to pay for college by yourself. Here are some tips on how you can pay for college without your parents' help.
Working in college is a great way to pay for tuition and build your resume. Learn more about the benefits of work-study jobs.
