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Student Loans
Private student loans are a smart way to
finance a college education with the benefits of competitive interest rates and
deferred payment plans, usually based upon credit worthiness, with proof of
income required. For the borrower who is self-employed, being in business for at
least 2 years is necessary for approval. Borrower must be a U.S. citizen or
permanent resident in order to qualify. Foreign students applying for a private
student loan may need a co-signor who is a U.S. citizen or permanent resident.
There is a maximum amount that can be borrowed. This financial aid will not be
taken into consideration regarding approval and the amount of financial aid
received will not affect the amount to be loaned.
Repayment plans vary, and the options usually include immediate repayment, due
45 days after last disbursement; deferred repayment which begins 6 months after
graduation; or pay interest while enrolled in school and begin repayment of the
principal after graduation. An undergraduate program may include no payment up
to 4 or 5 years. A graduate program may include no payment up to 8-1/2 years
based upon internship or residency requirements. A certificate program will
depend on the certificate and the time to completion for repayment of private
student loans. Most lenders offer up to 20-year terms for repayment on a private
student loan. There are usually no prepayment penalties and, origination fees
are usually charged by the lender and added on to the loan. These fees are based
upon a percentage that varies depending on payback options.
To apply online is very easy with an online application. It is important to know
the school of choice information when applying for private student loans. The
lending institution will need to know the information and must have the school
on their approved lists of schools. Online applications include fast fax back
options that make the process fast. When applying for a private student loan it
is a good ideal to know the degree program desired and the time it will take to
complete the program. Having communicated with a school enrollment counselor
will help the student to make these decisions and have this information
available to the lender at the time of application. This will speed up the
process.
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