Private Student Loans
The type of student loan you borrow can make a big difference in interest rates, repayment terms and deferment options. Private student loans are offered by financial institutions such as banks or credit unions. Most of these loans are based on credit scores and may require a co-signer. Below are some questions you may want to ask the lender when considering a private student loan:
- Will I have to make payments while in school?
- If not, when does repayment begin?
- How is the interest rate determined?
- Is a co-signer required?
- Are deferments available in the event that I lose my job or I am temporarily disabled?
- Are discounts available for auto-debit payments?
Ultimately, the decision to take out a private student loan can only be made by you but by doing your research and asking questions, you will be making an informed decision. The list above is not a comprehensive list but some ideas to get you thinking about private student loan lenders.
Visit the www.studentchoice.org/students/ for a list of Frequently Asked Questions specifically for private student loans.