When you find yourself in a situation where scholarships and federal student loans are not really covering for all your expenses in terms of your higher education, you can turn to private loans for financial support. Read on to learn more.
What Is a Private Student Loan?
Private student loans can be considered as student loans provided by private lenders, for example, banks and other financial institutions. Compared with federal student loans, private student loans can not be easily acquired because you need an excellent credit score, whereas you can acquire federal student loans without a credit check.
Nevertheless, private student loans can be more suitable than federal loans. The chances are, your choice will be determined by whether you choose a variable or fixed interest rate along with several other factors. The good news is, if you have a great credit score, you may be able to get a low interest rate.
How Much Can You Borrow With a Private Loans?
With a private student loan, you can get the full amount needed to pay for your education. With that in mind, the amount you receive from a private student loan will mostly depend on the lender, your credit rating, area of study, and whether a co-signer is available for you. Depending on the lender and the type of private student loan you want to apply for, some landers can top your whole amount with a lifelong loan limit.
Benefits of Private Loans
- You can acquire loans in high amounts when you need them. Federal student loans have annual caps that can be as low as $5,500 for pre-graduates. You might still need financial support after you have maxed out your federal student loan. This is where private student loans come in. They provide you with money for any remaining educational expenses.
- The application process for a private student loan is much faster compared to a federal student loan that requires you to fill out the Free Application for Federal Student Aid (FAFSA). In contrast, private student loans come with fast turnaround times. The majority of private student loans can be applied for online in a couple of minutes without handing out as much information as you would on a federal student loan.
- Private loans are also available for part-time students, meaning that you can qualify for a private student loan even though you do not attend school often. This is unlike federal student loans that require you to be enrolled in school full-time to qualify for a loan.
- Due to competitive interest rates, you won’t pay much interest on your private student loan. Borrowers with good credit or a co-signer who meets the standards have a great advantage as student loan interest rates and loan terms can be generous.
Get a Private Loan Today
Did you know that fewer and fewer business owners have been taking out loans? There was a 5% decrease between 2016 and 2017, down to only 40% of business owners in American applying for one. Private loans make it easy, and when you have reached your education goals thanks to private student loans, you can even get the help you need to achieve your career dreams. Contact GW Private Capital today to learn more.