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What are private student loans?

Recently, I've heard about private student loans and would love to get more information on them. I am a graduate student seeking a loan to finance my studies. Federal direct loans have higher interest rates and are not subsidized for students at my level. I need a recommendation of the best private student loans. Just provide a general review of the loans highlighting the important aspects. I would particularly love to know about low interest student loans. Please provide as much information as possible on loans for college that are offered privately. Please help me.

Carlton Burgess

in Student Loans

1 answer

1 answer

Blair Lewis on January 5, 2018

A private student loan is a non-governmental loan that is offered by independent establishments such as banks, credit societies, schools, agencies etc. Below is a highlight of what I think are the best. Go through them to find the best loan for college for you.

  1. Ascent loans: Has two loan products; Ascent Independent- for people who want to borrow as independents and Ascent Tuition for people who have a cosigner when borrowing. Allows for deferring of payments or interest-only payments while studying.  Offers tolerance in times of financial constraints.
  2. SunTrust loans: This is the best option for people with good credit scores. Has no initial fees such as application or prepayment, offers a six-month grace period to borrowers who choose not to pay immediately after graduation. Allows for interest-only payments for 1 to 2 years, one can defer loan payment, offers forbearance, one can temporarily reduce their monthly payment.
  3. Discover loan: Best loan if you have very good credit and you want a varying repayment rate. You should be sure to be capable of repaying more than the minimum amount after graduating.
  4. CommonBond loans: Allows the borrower to refinance a student loan. It also enables you to access a student loan college. Offers a financial hardship tolerance and a deferment of payment deferral while in studying.
  5. SalliMae loans: Good choice for those that have exhausted all federal student loans they can get and still require more money for college. Offers Payment deferral or interest-only payments while in school. Allows you to make interest-only payments for the initial 12 months after your grace period. Offers a financial hardship forbearance.

For a low interest student loan, check out the following:

  • Georgia Student Access Loan: For students in Georgia. Should have exhausted all other sources of help which includes Parent Plus. Must have a GPA above 2.0 (Annual percentage rate (APR) =1.00%)
  • Questa Foundation: Students from Northeast Indiana with a 2.75+ GPA. Those who will work in the area after graduating can get up to 75% of the loan forgiven. (APR=3.25%)  Dakota Education Alternative Loan – Regional: Students from or admitted at a college in South Dakota, Wisconsin, Montana, Minnesota or Wyoming. A cosigner with credit score of at least 575 a must. (APR=6.27%)
  • RISLA Immediate Repay Loan: Students from or admitted at a college in Rhode Island. Cosigner required, but can be released after 24 timely payments. (APR=6.39%)

Larry Warren2 years ago

Private student loans are vital in helping us go through our studies. However, I think that you should go for a federal loan. They offer fixed interest rates that are lower when compared to private loans. You ought to thoroughly explore the federal student loans by checking out FAFSA  before you can turn to loans from private sources. In your case, I recommend the Direct PLUS Loan. The rates for Direct PLUS Loans expended between July 1, 2017 and July 1, 2018 is 7%. This is a fixed rate for the entire loan duration.

Federal loans provide the borrower with a variety of advantages. These include income-based repayments and tolerance plans. Additionally, they have constant interest rates that are set by the Congress. Private loans interest rates depend on  an individual’s credit. For instance, if both you and your co-signer have poor credit, you’ll most probably pay an increased rate.

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