Private student loans can give you a real advantage because they can be used to help you cover those other costs that may not be covered by the normal type of student loans.

A general rule of thumb is to first apply for government loans that are available and then use these private loans as an additional solution.

The reason so many of these private loans are available was because it was found that there is a need to fill those gaps that the normal government type loans missed.

Private Student Loans – Benefits

Very low interest rates

Payment flexibility

Ability to arrange automatic deductions from loan payments.

Ability to obtain substantially discounted loan rates

Deferred payment options may be available.

No upfront fees or charges

co-sign

Cosigners are people who can boost the approval rate of the loans you apply for.

Having a co-signer can also help lower your interest rate.

Eligibility

Under normal conditions, you must be a US citizen and a permanent resident

You must be enrolled in an eligible educational institution.

You must be of legal age.

If you don’t have a co-signer, it’s a good idea to have at least 24 months of established credit history.

Certain conditions may also apply to your place of residence, check these conditions at each institution.

Cosigners can be from any state and there are no state-based restrictions.

Request

The first thing you need to do is submit the application, make sure all the required documentation is in order. Make a checklist of things to send, this will make it easier and will also act as a method of double checking if you have all the correct documents.

You will usually have an instant ‘yes or no’ decision, the approval process can sometimes be earlier. You can expect a result within 10 to 14 days.

It is advisable that your guarantor be of high standing and have a good credit score. This will help your app work faster.

When you then submit your documentation.

Fees typically charged are standard industry fees and do not vary greatly from institution to institution. Your fee structure will be determined during the application process. These rates will also change slightly based on your own credit score.

Your payment schedule can vary from fifteen to twenty years.

I hope this guide to private student loans has been helpful, good luck with your studies.