Get loans from private lenders to supplement your federal student loan. If you have exhausted your federal loan offer, then you can go ahead to apply for private student loans. See the list of the best US private student loan lenders.
Before you choose a lender, you need to consider some factors: interest rates, credit score, etc.
What are Student Loans?
A loan is money you borrow to pack back with interest. Student loans are designed to help students cover the cost of education: tuition, living expenses, books, supplies, etc.
Student loans differ from other types of loans. The terms and conditions vary from normal loans offered by loan companies. The interest rate is usually lower in student loans.
Further, as a component of a larger financial aid package that may include grants, scholarships, and/or work-study options, student loans may be made available.
US Private Student Loans
In the United States, a private student loan is a financing alternative for higher education that can complement government loans but shouldn’t take their place. These loan lenders set the terms and conditions for qualification
In private student loans, there is a lack of the forbearance and deferral options that federal loans have.
Is it Good to Get a Private Student Loan?
We only advise students to get private loans for students when they have exhausted their federal loans. Private loans have higher interest rates compared to federal student loans. These private companies offer loans with no fees, then, they toll these fees into the interest.
Also, you can only qualify for private loans when you or a co-signer have an excellent credit score.
Who is Eligible for Private Student Loans?
To be eligible for US private loans, you must meet certain requirements. Federal and private loans have similar eligibility requirements, with only a few differences.
Eligibility requirements:
- Applicants must be a US citizen
- You must have excellent credit or find a co-signer who has one.
- You must be 18 or older
- Applicants must show proof of the school they are enrolled in.
Best US Private Student Loan Lenders
- College Ave Private Student Loan
College Ave Private Student Loan is one of the best loan lenders in the US. It is one of the fastest loan lenders; that is, students can get approved fast.
Also, College Ave Private Student Loan does not charge any application fee.
Loan term: 5 – 15 years
Loan rate:
- Variable rate = 1.29% – 12.99% APR
- Fixed-rate = 3.22% – 13.95% APR
- Sallie Mae Private Student Loan
Sallie Mae Private Student Loan offers several repayment options for applicants. Also, the servicer does not charge application or disbursement fees.
On Sallie Mae, there are loan options for undergraduate and postgraduate students.
Loan rate:
- Variable rate = 2.62% – 12.97% APR, for undergraduates, and 3.12% – 12.80% APR for postgraduates.
- Fixed-rate = 3.75% – 13.72% APR for undergraduates, and 4.25% – 12.92% APR for postgraduates.
- Discover Student Loans
Discover offers loans for undergraduate and postgraduate students.
Loan rate:
- Variable rate = 2.99% – 13.99% APR
- Fixed-rate = 5.49% – 14.99% APR
- Education Loan Finance
Education Loan Finance offers student loans in easy steps. Also, the application requirements for Education Loan Finance are very easy to meet.
Loan rate:
- Variable rate = 1.86% – 11.52% APR
- Fixed rate= 3.20% – 11.99% APR
- Ascent Credit-based Student Loan
Ascent Credit-based Student Loans offer loans to US citizens and international students.
Loan rate:
- Variable rate = 1.75% – 10.54% APR
- Fixed-rate = 3.22% – 13.09% APR
Private Student Loan Forgiveness
Financial organizations including banks, credit unions, and companies that provide credit cards, like Discover, issue private student loans. Since the Education Department does not disburse these loans, they are not eligible for forgiveness.
Private Student Loan Repayment
Private student loans must repay. Several private loan lenders have different repayment options for users to pay and offer their loans according to their income. Companies like College Ave offer loan repayment terms from 5 to 15 years.
Before you choose a service, make sure to look at their repayment options to find the suitable ones for you.
Private vs Federal Student Loans
- Private loan lenders check the credit of the applicant, which means that a lender will look at your history of borrowing money and paying it back before you can get approved.
- Federal loans have lower interest rates compared to private loans. The majority of private student loans come without any fees, effectively adding them to the interest rates.
- Private student loans are heavily advertised, while federal student loans are never.
- Federal loans have several deferral options compared to private loans.
Study Via Scholarships
Further your education via fully funded scholarship schemes. There are tons of scholarship opportunities available for students to study at home and abroad.
See them below.
