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Private Student Loans Can Supplement Federal Aid
from:Private Student Loans Can Supplement Federal Aid, Help Borrowers
Prospective college students have a variety of student loans from which to choose, from federal student loans to private loans. With the rising cost of a college education, student loans can help ease the burden for those seeking a higher education or for parents paying for education for K-12 children.
Oftentimes federal aid does not cover the entire cost of a college education. However, students and/or parent borrowers can supplement federal aid with private loans.
Private Student Loans
Private student loans are unsecured and credit-based. Students can use private loans for tuition and fees, supplies, computers and living expenses.
NextStudent, the Phoenix-based education funding company, offers private loans for K-12 students, where the parent is the borrower. Also available are private loans for undergraduates, graduates and continuing education students. For these loans the student is the borrower and must be at least 18 years old.
Benefits and Incentives of Private Student Loans
NextStudent private student loans offer a host of benefits that do not necessarily apply to federal student loans. There are no prepayment penalties; students can apply with a co-signer; generous borrowing limits are available; there are no application deadlines; students can cancel within 90 days of disbursement, with no fees or interest; and fees charged to students are minimal to cover defaults.
There are many incentives when taking out a NextStudent private student loan. Since interest is tax-deductible and funds are sent directly to the borrower, private student loans are an easier way to help students pay for school. It also is encouraging to know that with private loans no original signature is needed and pre-approval is fast. Private student loans also can be used for distance learning, international students, study-abroad programs and past due balances at school.
Requirements for Private Student Loans
Prospective private student loan borrowers must meet certain requirements. Students must attend a TERI approved school and provide proof of income and enrollment. When applying with a qualified co-signer, borrowers automatically are pre-approved, which is based on credit score. When applying with a qualified co-signer there is a higher approval rating, 60 percent of borrowers receive the lowest possible origination fee, and most students will receive the best pricing.
Private student loans through NextStudent offer prospective borrowers a host of incentives and benefits. When federal student aid is not enough, private student loans can help fill the void and help prospective students receive a quality education.