Home » Finance

Private Student Loans - The 21st Century Educational Lending Option

Jan 18, 2008
Private student loans are designed to provide additional money when a student has exhausted other types of federal loan programs. It's no secret that government-backed educational funding is getting harder to come by. For that reason, the U.S. is experiencing very rapid growth in private student loan lending - a much higher rate of growth than federal student loans. It is very likely that within a decade private student loan volume will exceed federal student loan volume.

Private loans usually are provided by the institution of education or a private lender of the student's choice. Accordingly, the interest rate and other criteria of the loans will vary based on the individual student and lender. Generally, a student with poor or little credit history will be able to get a better rate with a co-signer, just like any other type of loan. For borrowers with excellent credit (or co-signers with excellent credit) it is possible to get an interest rate that is competitive. There are five types of private loans, and each is based on the financial history and needs of the student borrower.

The Signature Student Loan is used after federal loans such as the Stafford loan have failed to cover all costs of the student's education. Signature loan approval depends on the student's credit rating and academic standing. The advantages to this type of loan are its high approval ratings and the ability to borrow as much as is needed to pay for schooling.

The Tuition Answer Loan provides readily available money in the amount of $1,500 to $40,000 per year, depending on the borrower's credit standing and a creditworthy cosigner. Further advantages of the Tuition Answer Loan include no required collateral, tax-deductible interest, and choice of repayment options.

The Community College Loan's high approval rating and flexible repayment duration make it an attractive loan for those students attending a two year institution in search of an Associate's degree. Applicants must be in good academic standing, and good credit will help to keep loan interest payments reasonable.

Continuing Education Loans provide funds for postsecondary students not pursuing a degree program or for part-time students who are gradually pursuing a degree. Borrowers with good credit or students with a cosigner will benefit from competitive interest rates and repayment schedules as long as 15 years.

The Career Training Loan is an attractive loan program for borrowers who need funds for technical training schools, trade schools, continuing education programs, or distance learning courses. This loan is especially beneficial to those with good credit or a qualified cosigner.

There are now many private student loan lenders, each of which offers loans to fill particular needs. For instance, some loans can be used specifically for the purchase of a computer, and other loans can be used specifically for study abroad. Care should be taken to look for loans that fit the particular needs of the student. Some loans can even be used to pay for previous school charges.

Private student loans can be consolidated, although the process really just replaces one student loan with another. Two advantages of doing this are that the borrower can end up with a single payment, rather than making multiple payments, and if the borrower's credit rating has improved since the initial borrowing, he may qualify for a better rate.
About the Author
Student Loan Financial Group (http://www.slfg.com) makes life easier for students with its Quick-To-Learn private student loan product. Our online application only takes about 15 minutes, and you get an answer within a week.
Rating:
Please Rate:
(Average: Not rated)
Views: 133
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources