Are your kids ready to apply to college this year? Or maybe you’re a college student and still confused about the student loan process.
If you need to borrow from a private lender, do your research and compare loan features and contracts to see which best suits your needs.
Unlike federal student loans, you can apply for private student loans at any time, but don’t wait until the last minute. If the funds are not paid on time, you may miss your tuition payment.
Check amount and budget
Find out if the loan amount is right for you. Lenders often offer loans that far exceed the amount needed for education. Create a budget to determine how much loan you need and how much you can afford to repay after graduation. Borrowing too much means paying more interest in the long run.
Getting a private loan co-guarantor is a last resort. Carefully consider federal loan options and consider finding a co-guarantor if you are unable to qualify for an affordable loan on your own. Note: If the loan payment fails, the co-guarantor is responsible for paying the debt. Both credit histories are affected.
Avoid “free money” from organizations you don’t know. Many scammers offer loans without a credit check to prey on students and parents with little or no credit.