Key Benefits of Private Student Loans
Private student loans can be obtained at a faster pace, making it easy to get and with great flexibility. Read
on to know how private student loans help students further their academic activities at ease.
student loan, student loan consolidation, private student loan, federal student loan, student loan calculator,
student loan repayment, private student loan consolidation, student loan debt, student lo
With the steady escalation of educational costs and as the number of applicants are on the rise for federal
loans, private student loans have grown rapidly among college students. Many students find the private
student loans to be fitting and obtained effortlessly for making college education expenses. Private student
loans also known as alternative student loans are obtained from private financial organizations, banks, credit
unions etc based on the credit worthiness of the applicant for repaying the money without the interference of
the government within a short period. Private student loans also are frequently used in the combination with
federal student loans, especially when the funds are not sufficient through the federal student loans to cover
the full expenses towards education.
Private student loans can be availed of by students with good credit report, or when he is a regular employee
or if he is permanent resident of US. To satisfy the these requirements, he can apply with a co-signer who
meets the minimum eligibility criteria and avail the private student loan.
Benefits of private student loans:
Private student loans can be obtained at a faster pace, making it easy to get and with great flexibility. The
approval process is too quick in the case of private student loans that the funds are got by the student within
five business working days after the application. The money, which can be availed of through private
student loans, is much higher than the federal and scholarship funds. The private student loans can be
availed any time by the student without any need to worry about application filing before closing dates.
Many private student loans can be consolidated. These private student loans can be used to purchase a
laptop, or towards educational expenses etc. A government student loan however, might be very restrictive
in spending the money. There is no government intervention, as it is an agreement between the borrower
and the private lender. Thus no need for government paperwork.
Although there are lots of advantages in getting a private student loan, no one can deny the disadvantages it
has. Private student loans are only for credit worthy individuals, and mostly a co-borrower has to co-sign
the loan document. Mostly the co-borrower is the parent. Also, the private student loans carry a hefty
interest rate when compared with government student loans. Interest rates can vary each month, while
government student loan interest rates are fixed. It requires applying for the loan several times as the
applications are separate for each academic year in the case of private student loans.
Guidelines lenders look in for students’ creditworthiness:
A good credit history for a minimum of 21 months should be there. The residence should not have been
changed at least for one year’s time. Should be a citizen of US or a permanent resident of US and should
have resided for two years in US prior to permanent residentship. Should be able to provide proof of present
revenue with an employment in the area where the student is attending school. Should have been in the job
for at least 2 years, in case of self-employed should have been conducting business for at least 2 years time.
Credit Dispute Letter