Private Student Loans-Alternative Loan Resources

Private student loans can be a great alternative resource when you have tapped out all funding available through government student loans or you are not eligible for government student loans because of inability to demonstrate need. These types of loans are commonly known as alternative loans. For many students and parents one of the major advantages of private student loans is that they can help to bridge the gap between funding available through other sources and the actual cost of education. Other benefits of private student loans include:

• No federal forms to complete
• Loan amounts available up to actual cost of education-minus other aid received
• Non-need based; eligibility is based on credit score
• No application deadlines-unlike federal student loans

Besides the advantages of private student loans mentioned above, many parents and students also find alternative loans to provide more flexible repayment options than may be available through government student loans. Deferment until after the student graduates is just one such example.

Keep in mind that even though eligibility for private student loans is often based on credit score, if you need additional funding it is still a good idea to go ahead and complete the forms, allowing us to check for you. You may be surprised at what we discover.

Comparing Private Student Loans and Federal Student Loans

It is important to be aware that federal student loans typically carry interest rates that are higher than federal student loans. In addition, maximum repayment terms may not be as lengthy for private student loans as provided through federal student loan guidelines.

There are many different private student loans available to meet the wide variety of needs of students and parents. If you think private student loans may suit your individual needs, contact us and let us help you get started with the process.