Private Student Loans For College - Credit and Cosigner Requirements
Today, the cost of obtaining a quality education increases each year. This can leave families struggling to pay their child's tuition bill each semester. There are many alternatives to paying for college: student loans, grants, scholarships, college savings funds.
However, often the amount from these various streams do not always equal the total amount needed. This is when having the option for private student loans for college can make the difference between a student completing their degree, or dropping out.
Tuition, dorm fees, books, and meal plans quickly add up. Applying for private student loans for college is a better alternative than taking out a second mortgage to cover college expenses. This financial aid alternative offers competitive interest rates, a flexible repayment plan and a tax deduction for parents. There are several options that both parents and students have when considering private student loans for college.
One of the most popular options for private student loans for college is the Signature Student Loan. To be eligible, a student must be working towards a degree at a community college or a four or five year degree college for at least half time. Additionally, there are certain credit criteria that must be met. This can be one of the challenges for parents and students. Unlike the Federal Stafford loans, a person's creditworthiness determines whether or not the loan is awarded. Your credit is not used to determine eligibility for Stafford loans.
If a student wishes to apply for a Signature Student loan but does not have established credit, a cosigner who meets the eligibility requirements is acceptable. Your cosigner can be releases from repayment obligation after the student has made 24 consecutive on time payments.
Another options for private student loans for college is the Continuing Education Loan which is a credit-based loan for post-secondary students who are not pursuing a degree. Part-time degree seeking students may also apply for this type of loan.
The institution where classes are taken must be accredited by the department of education in the state where it is located. Additionally, applicants must have established credit and be a U.S. citizen or permanent resident.
All private student loans for college require an established, good credit history for the student and parents, regardless of the type. These loans are not guaranteed by the federal government, so the lending institutions must have some type of guarantee for being repaid.
Before applying for these or any type of financial aid, families must determine the total cost for attending college, review their financial position, and weigh the best options so that the student can have complete success.
Article Title : Private Student Loans For College - Credit and Cosigner Requirements
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!
How EdFed Helped others!
I contacted several lenders while I was looking for a company to consolidate my federal loans. I heard all of the sales pitches. What it really boils down to, through, was who could save me the most money. Edfed is the only lender who would guarantee my borrower benefits. All of the other lenders had provisions allowing them to take my 1%interest reduction away even after I earned it. On my consolidation, the 1% reduction will save me almost $18,000, with EdFed, I know I will get the savings. EdFed beats the competition hands down. - John F. Albany, NY
Student Loan Consolidation Info - How to Choose the Right Loan Company
The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.
Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.