Private Student Loans

About Private Student Loans
A student loan is a special type of low-interest loan that is issued to students in order to help pay for college tuition, books, and other expenses. Student loans are tailored to student borrowers, and as a result, are distinguished from other types of loans by their borrower-friendly application processes, favorable interest rates, and flexible repayment terms. Private student loans are offered by banks and other financial institutions, from leading national lenders to local banks and credit unions, so you will have many options when searching for funding for college. Private student loans are intended to supplement federal student loans, not replace them; for many students, federal loans aren't enough, and in this case, private loans can be a good final source of funding.

Benefits of Private Student Loans
College has never been more important, and yet a college education has never been so expensive. Students and their families currently face this unpleasant conundrum; what's more, financial aid resources are quite limited at the overwhelming majority of institutions in the country, an issue which only compounds the problem of affording college. Fortunately, private student loan options exist to provide students and families a final source of funding to fill the financial gap between one's tuition bill and any financial aid received.

Key Facts about Private Student Loans
Private student loans:

• Usually have interest rates that are variable and higher than Stafford loans.
• Often have higher borrowing limits than Stafford Loans.
• Are taken out in the student's name, usually with a co-signer.
• Require a credit check during the application process.
• Offer deferment of loan payments while the student is in school.

How to Choose the Right Private Student Loan for You
Here are a few pointers on how to choose the best private student loan for you. First, compare, compare, compare. There are many different loans out there, and it is extremely important to thoroughly research all of your loan options so you are aware of the specific details of each individual loan. Consider the loan's APR (Annual Percentage Rate), which bakes in all the costs associated with the private student loan so you can compare one loan to another on an apples-to-apples basis. Be aware of the total cost of the loan, which factors in interest rates and repayment timelines to calculate just how much borrowing will cost you when all is said and done.

Applying for a Private Student Loan
Before applying for a private student loan, as we mentioned above, it's important to compare your options. To search for and compare your loan options, use our student loan comparison tool right on this page. It will provide you with transparency regarding all of your different loan options, and once you find the loan that's right for you, you can apply for it.