What are the best companies to get private student loans from?
Brenda R. From Alaska asked: I am in the process of looking for a private student loan to cover my tuition and living expenses during college. I was told that an Astrive Student Loan is a good company to use. Are there any other good companies where a person with bad credit can get a loan? I really need some private student loan advice on this matter.
Student Loan Guru: The loans that you’re asking about are Private Student loans from private lenders. Honestly, there’s not a lot of difference between these lenders. Think of these student loans as normal loans. You’re looking for the same features and benefits that you would if you were seeking a normal loan. Good interest rates, repayment schedules, terms, etc.
The only difference is that student loans do have some government requirements.
Due to the current financial crisis, many lenders have stopped issuing student loans altogether while others have stopped lending money to students or parents with bad credit.
A large number of college students receive financial assistance from a grant, work-study program, or Federal student loan. However, due to rising college tuition, traditional financial aid doesn’t always cover their expenses. When there is a difference between the education costs and financial aid received, students must find a way to pay the excess.
Some people choose to use personal savings or a credit card when neither option is available, a private student loan from a private bank can fill in the gap. Private student loans are beneficial because they provide a quick solution to a tuition problem. Unlike Federal student loans, which can take several months to process and disburse, private student loans offer quick processing, and the money is normally distributed to the student within five business days. Once the student acquires the funds, the money can be used for multiple purposes such as tuition and books.
Federal student loans place limits on how disbursed money is used. However, a private student loan can pay for a variety of education-related expenses such as a laptop, rent, transportation, etc. While private student loans offer flexibility and quick processing, getting approved for such loans is no easy task. Federal student loans and grants do not require good credit, which is a nice feature since many college students have little or no credit history. Private student loans are quite the opposite. Because private banks approve the funds, loan requirements include a solid credit history and verifiable income. Plus, the interest rate on a private student loan is generally higher than a Federal student loan, which can equal a higher monthly payment. Before getting a private student loan from a private lender, just make sure you do your homework, especially when it comes to …
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