Private Student Loans

Paying for college tuition is difficult, and sometimes there just isn't enough government and state funding to go around. Even after you've applied for and received all the scholarships, grants, and federal and state loans you can find, you may still have a huge bill looming over you. In these instances, you can choose to take advantage of private student loans to cover the remainder of your costs. The essential thing to know is how you can qualify and what you can expect from a private institution.

One type of common private lender is a personal bank. During times of economic downturn, borrowing from banks is inadvisable due to the higher interest rates and stricter repayment options. Because most private loans are based on whether a borrower has a good credit history, a co-borrower or co-signer may be required.

Most of these banks have a website where you can explore the options available to you, allowing you to compare and contrast the various private student loan options before ever speaking to a loan officer. In fact, many of these lenders have specific areas of their websites dedicated to student loan programs, offering advice and options for your review and consideration. Interest rates will vary by lender and program and will probably be higher than those attached to federal and state issued loans; however, as part of a private student loan program, the interest rates should be lower than a standard personal loan. Best of all, the use of these loans is not limited to tuition and can cover the cost of books and other materials, student housing, and even traveling to and from campus or an internship.

An important thing to remember in applying for and accepting private student loans is that you should carefully read the terms and conditions and understand the expectations. This is not only to ensure that you are aware of repayment terms, but also to secure the best possible rates.

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.