What is a Private Student Loan?
A private student loan is where you are borrowing from a private lender. This can be a local or national bank. It can also be a student loan from an online lender or even a credit union. There are multiple lenders who issue private student loans. This is why you will want to compare.
How To Apply for a Private Student Loan
The best way to apply for a private student loan is through a lending network. The bottom line is that each lender is going to have different rates and terms. You will have to fill out the same information over and over at each lender. This can be a real pain and not efficient.
An online lending network gives you the ability to just fill out on easy form and then compare all the lenders rates and terms in one place. We recommend you use the following.
What Lenders are in Their Network?
Credible has a network of lenders. They do all the hard work for you. Just fill out one easy online application and they will save you time and money.
Examples of just some of the lenders for private student loans in their network include the following. SunTrust, Discover Student Loans, Citizens Bank, College Ave, Sallie Mae and more.
Why Students May Need Private Student Loans?
Paying for college can be tough. Once you have gone through your savings you may be asking what other resources you have available.
If a parents income is too high a student may not qualify for Federal Student loans. Another alternative is to check for scholarships or grants.
After a college student has gone through all of these options, a private student loan is another resource that can be used to pay for college.
Will I Need a CoSigner?
Many private student loan lenders may require a cosigner on the loan.
It depends on multiple factors such as your income and credit score at the time you apply.
Once you submit your form, you will find out if you will need a cosigner to be able to qualify for a private student loan.
When using a cosigner just remember this now becomes their obligation to pay if you don’t. So be responsible and pay your payments on time.
What is the Difference Between Private and Federal Student Loans?
Federal student loans are issued by the government. Private student loans are issued by private lending institutions.
Private student loans can have fixed or variables rates. A federal student loan has fixed rates over the life of the student loan.
The repayment plans on federal student loans are income driven. If you work in public service you may get forgiveness on a portion of a federal student loan.
Usually the first step would be to apply for a federal student loan. Then a second option would be to obtain a private student loan.
I Want to Refinance My Student Loans?
Credible also uses the same easy process to refinance your student loans.
If you have private student loans that you want to refinance, you can refinance with Credible. Just click on refinance loans below to get started on refinancing student loans.