Private
Education Loans
Private education
loans (sometimes referred to as Alternative
loans) makes it possible for those who cannot
afford the high costs of today's educational
expense to still attend the college of their
choice by bridging the gap between money available
through federal loans and the actual cost of
attendance. Federal educational loans are marked
by caps – maximum amounts that you
can borrow – set by Congress. Because these
loans carry limits, in the majority of situations
they do not cover the total amount of attending
an institution of higher education and hinder
your ability to attend the school of your choice.
Private education loans eliminate this barrier
by making up the difference between the limited
amount the government allows you to borrow in
federal loans, and the cost of attendance. Applying
for a private education loan is easy; there are
no federal forms to fill out and decision is
instant.
Read on to learn more about private education
loans in general – or, to learn more about private
education loans from eduKey, click
here.
Flexibility
Private education loans are unique in that they
may be used for all education-related
expenses. Aside from tuition, use your private
education loan to help cover the cost of expensive
text books, room and board, a computer, transportation,
study abroad, or any other expense you have while
pursuing your degree. Additionally,
private education loans provide flexible repayment
options. Payments may be deferred until after
graduation, sparing you of the stress of in-school
repayment and allowing you to concentrate on
the most important thing: your education.
Cost
The cost of private educational loans vary by
lender and lending qualifications. They do, however,
cost decidedly less than other non-federal options
such as credit cards. Unlike home equity loans,
private education loans do not require any collateral.
The only costs associated with private education
loans, other than principle and interest, may
be an origination fee which is usually added
onto the overall principle therefore eliminating
upfront payment.
Credit Scores &
Co-Signers
Interest rates and fees paid on private education
loans are primarily credit-based, requiring steady
income and a good credit history. Most applicants,
undergraduate and graduate students alike, do
not have enough credit history to qualify for
a private education loan by themselves and instead
apply for their private education loan with a
co-signer. Not only do qualified co-signers
increase your chances of being approved for a
private education loan, they often increase your
ability to qualify for a lower interest rate,
thus decreasing the overall cost.
When searching for a private education loan,
there is no better choice than eduKey. To learn
more about private education loans offered
by eduKey, please choose one of the following:
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