After you have taken advantage of all other available forms of financial aid, such as grants or scholarships, you may need supplement funding to cover the difference between your education costs and expenses.
Tip! Avoid loan consolidation if your student loan is almost paid off, consolidating loans later on can mean ‘resetting’ the loan process, meaning you’ll pay more interest.
Private student loans are available from a variety of sources to help cover the differences. These loans are not sponsored by government agencies and are offered by banks or other financial institutions so the interest rates can vary greatly. It is of your best interest to compare what is available to get the best possible loan. Investigation and research is the key. It is also wise to apply to a few different lenders at the same time. Each lender has their own credit qualification criteria. This can vary depending whether the borrower is a student or parent, or whether the loan is backed by a cosigner.
Tip! In school consolidation arrangements. Student loan consolidation can help ease the burden of several monthly bills.
Find out if you will qualify for a private loan. Pre-approval eliminates uncertainty up front and can save a lot of time as you will know that you qualify and the amount you can expect to receive before you go through the full loan application process. In some cases, you can find out if you qualify in less than 30 seconds.
Once you complete and submit your student loan application, your school Financial Aid Office will certify your loan application and forward it to the Disbursing Agent for final approval, guarantee and disbursement. You will receive your loan funds at the beginning of each school terms.