College is one of the most exciting times in ones life, with the ability to spread your wings, enjoy time away from home, and of course finally learning the information you need in your career. Not everyone going to college starts off with a goal in mind, but most everyone starts off needing financial assistance of some kind. There are many avenues to pursue financial assistance from government, state, to private student loans. When you are interested in obtaining a private student loan there are some things you nee to be aware of. Some of the private student loans are better than city state loans that you can get, but for the most part you will find the private student loans are easier to obtain, but more difficult to pay back.
What I mean is most private student loans are going to have a higher interest rate than the government loans you can obtain. There are of course many reasons for choosing a private student loan despite the interest rate. Let’s look at what private student loans can do for you. You can with certain private student loans borrow up to $35,000 a year for a total of $150,000 per student. In other words if you need the financial assistance as the student or parent helping out the student you will be able to borrow at most $150,000 per year with some private student loans. The amount will vary depending on the loan company as well as the restrictions placed on approval. Some like the Sallie Mae private student loans don’t require a FAFSA report, while Chase bank will require the report. The FAFSA report tells them the amount of income you have per year for the borrower, how much you can afford towards school, and whether you are going to obtain federal loans or eligible for federal loans.
With a private student loan the company really isn’t going to care if you can obtain a federal student loan, but they will most likely base the amount they offer you on the other help you will be receiving, if any. You can use a private student loan with more options. First you can receive more from the loan, but second you are not stuck just paying for tuition and books with the private student loans. You can have the loan for tuition, room and board, off campus living expenses, books, supplies, lab fees, student activity fees, computer and printer, and other college needs even vacation expenses.
The only worry you should have with the ease to obtain this loan is the interest rate and payment periods. Some of the private student loans will offer payments after graduation, while others will call it deferment until after graduation still billing you for the interest rate. Student loans typically don’t add the interest rate until it is in repayment status. This means you lock in an interest rate during the school time, but the money doesn’t start accruing until after it hits repayment status.