Bank Student Loans

bank loansA college education has never been more important, but unfortunately, it has also never been more expensive. College costs have been steadily rising over the years, and are continuing to do so at an alarming rate. Price tags from anywhere between $10,000 to $60,000 per year can be huge barriers to obtaining an education for prospective college students. Few families are in a position to cover the total cost, so student loans are an important part of any financial aid packages. Bank student loans, or private student loans, are one way that parents and students can choose to help pay for higher education.

Sources

It is very common for students who are receiving financial aid to receive a portion of their financial aid in the form of federal student loans. These loans are from the federal government; they include subsidized Stafford loans, unsubsidized Stafford loans, Perkins loans, parents PLUS loans, and GradPLUS loans. If these federal student loans, in addition to any other aid received, do not fully cover the cost of attending college, then students can receive financial aid from external sources in the form of bank student loans. Banks, credit unions, and private financial institutions like Sallie Mae offer various types of bank student loans.

What you should know

When you apply for student loans from banks, you will need to provide financial information to the bank: tax  returns, income, assets, liabilities, etc. Another key requirement for getting a loan is to have a strong credit score; however, bank student loans require the student to have a cosigner. This cosigner generally should have a good credit score as well because that helps with the chances of approval. When applying for bank student loans you are advised to do your homework, and research all the options to figure out which ones suit you best.

 

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