Private student loans are a smart way to finance a college education with the benefits of competitive interest rates and deferred payment plans, usually based upon credit worthiness, with proof of income required. For the borrower who is self-employed, being in business for at least 2 years is necessary for approval. Borrower must be a U.S. citizen or permanent resident in order to qualify. Foreign students applying for a private student loan may need a co-signor who is a U.S. citizen or permanent resident. There is a maximum amount that can be borrowed. This financial aid will not be taken into consideration regarding approval and the amount of financial aid received will not affect the amount to be loaned.
Repayment plans vary, and the options usually include immediate repayment, due 45 days after last disbursement; deferred repayment which begins 6 months after graduation; or pay interest while enrolled in school and begin repayment of the principal after graduation. An undergraduate program may include no payment up to 4 or 5 years. A graduate program may include no payment up to 8-1/2 years based upon internship or residency requirements. A certificate program will depend on the certificate and the time to completion for repayment of private student loans. Most lenders offer up to 20-year terms for repayment on a private student loan. There are usually no prepayment penalties and, origination fees are usually charged by the lender and added on to the loan. These fees are based upon a percentage that varies depending on payback options.
To apply online is very easy with an online application. It is important to know the school of choice information when applying for private student loans. The lending institution will need to know the information and must have the school on their approved lists of schools. Online applications include fast fax back options that make the process fast. When applying for a private student loan it is a good ideal to know the degree program desired and the time it will take to complete the program. Having communicated with a school enrollment counselor will help the student to make these decisions and have this information available to the lender at the time of application. This will speed up the process. "How much better is it to get wisdom than gold! and to get understanding rather to be chosen than silver!" (Proverbs 16:16)
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