Personal Student Loans

As a student headed to college, you'll most likely need financial aid above and beyond what the federal government and the college or university of your choice can provide. Also, if you are young, you may not have the credit history needed to apply for a standard loan without a cosigner. If your parents don't have the necessary low debt-to-income ratio, or you have no acquaintances who can help you out, paying for school can feel like an impossible task. The alternative is a personal student loan, which is available through many private lenders.

While you can go out and obtain a personal loan for college through a number of resources, few will get you the low interest rates and long term repayment options that are afforded through federal funding opportunities. Most lenders require that you attend a four-year college or university at least half time to qualify for personal student loans, and students must be at least 18 years of age or older to apply. Some companies offer loans to students fresh out of high school with little to no credit, but these loans should be borrowed with caution, as interest rates could be high and repayment terms can be inflexible.

Personal loan programs are based on the idea that providing students with the ability to gain a quality education will result in their future success, allowing them to be able to afford to repay the loan as promised. Unemployment immediately following graduation is not always guaranteed, which is why it is recommended that you only turn to personal loans when all other avenues for financial aid have been exhausted.

Paying for school is not easy, but we are here to help. OEDb's student finance section will help you find the money you need to pay your tuition and other college expenses. We cover scholarships, college grants, and student loans. Scholarships and grants are both forms of "free money", meaning they don't need to be paid back. Scholarships are typically awarded by businesses or individuals, with the money being earmarked specifically for tuition. They can be awarded based on a student's location or by religious affiliation, such as Catholicism or Islam. Grants are typically awarded by governments or non-profit organizations and the money often can be applied to several different expenses a student may incur, not solely tuition. They can be awarded based on location or ethnicity, for instance African American or Hispanic. Loans are not considered "free money", because unlike scholarships and grants, they do need to be paid back after graduation. Common federal loans include Perkins and Stafford. Loans are also available by location.