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Private Student Loans – dispelling the myths
Vanessa McHooley
Private Student Loans – dispelling the myths
If savings, grants, scholarships, and federal loans don’t cover
the cost of your education, it’s time to turn to private loans.
But young college students can’t qualify for a private loan, can
they? Wrong! This article addresses this and other myths about
student loans that you may run into.
I don’t have any collateral, so I can’t get a private loan.
Private loans are usually unsecured, which means no collateral is
required. On the downside, this may also mean a higher interest
rate.
I don’t have a good credit history (or no credit history at all)
Since the government doesn’t back private loans, your credit
history is a consideration in being approved for a loan. If your
credit history is bad or non-existent, you may be subject to a
higher interest rate. And remember, you can always get a
co-signer. Pay your loan off on time, and soon you will have a
good credit history!
I have enough funds for tuition and fees, so I can’t get a
private loan
In addition to paying tuition and fees, funds from private loans
can be used to cover living expenses, supplies, computers, and
other everyday living needs.
I can’t afford to make payments on a loan while I am still in
school
For most loans, your principal and interest payments can be
deferred while you are enrolled in school. Another option is to
make interest payments while you are in school but defer paying
off the principal. Your interest payments might even be
tax-deductible!
I missed the deadline for applying for financial aid this year
You can apply for private student loans any time – there is no
deadline. Depending on the financial institution you choose, you
can be pre-approved in minutes and have the money (which will be
sent directly to you) within a matter of days.
I don’t have a bank to apply through
Private loans are offered by thousands of banks, credit unions,
and other financial institutions. Just search the internet for
“private student loans” and you will find many places to apply
to.
If you need the additional funds provided by private loans, don’t
let myths and misconceptions keep you from applying!
This article is distributed by NextStudent. At NextStudent, we
believe that getting an education is the best investment you can
make, and we're dedicated to helping you pursue your education
dreams by making college funding as easy as possible. We invite
you to learn more about Private Student Loans at
http://www.NextStudent.com
Vanessa McHooley
My goal is to help every student succeed - education is one of
hte most important things a person can have, so I have made it my
personal mission to help every student pay for their education.
Aside from that, I am just a pretty average girl from SD.
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