How to Qualify and Apply For a Private Student Loan

How to Qualify and Apply For a Private Student Loan

Paying for your education can be very challenging especially when you don’t have a scholarship, grants or other financial aids. Student loans (Private Students Loan and Federal Student Loan) can offer you a way out to pay for your tuition and then you can pay back with interest by installment.

There other ways to also finance your studies which are getting a part-time job or a full-time summer job. The only problem with working while studying is that your attention becomes divided, and you will probably not have enough time for your studies.

If you know how to manage your time very well then getting a part-time job should be the best way for you to finance your studies, plus you gain much-needed experience. However, if you want to focus on your studies, and have stress free (combining work with school is very stressful) semesters, getting a student loan is the best option for you.

If you want to obtain a loan as a student, you have two basic options the Federal Student Loan (FSL) and the Private Student Loan (PSL). The Federal Student Loan is seen as the best because it offers students a variety of options and a lower interest rate.

So, the first option for students to finance their studies is a Government-funded or Federal student loan. However, Federal loans are usually not enough because the government sometimes makes available limited amounts.

Private Student Loans
Private Student Loans

With a Private Loan, you get more money and the freedom to take as much as you can afford to pay back. The rates may vary depending on company lending. Although private companies prefer short-term loans there some that offer long term loans to enable you to complete your payment.

How to Qualify For a Private Student Loan

  • You must intention to use the loan for educational expenses.
  • Maintain a certain level of academic progress and grades.
  • If you are an international student studying in the US, you will be required to bring a Co-signer who is a US citizen.
  • You must currently be enrolled in a school.
  • The student must be creditworthy
  • The borrower must not be less than 19 years.
  • School information.

How to Apply For Private Student Loan

  1. Decide on how much you need to complete your studies. You could run an estimate of the total cost you will require to complete your course program.
  2. There are several private loans out there, make list and discover the one that meets your needs. Here is a loan comparison tool to help you

Top 8 private student loans

  • Ascent
  • Citizen Bank
  • College Ave
  • Discover
  • EDvestinU
  • INvestED
  • MEFA
  • Sallie Mae

3. The next thing to do is to find and collect all the required information for the application, which are listed earlier in this article

4. The next step after you have chosen who your lender should be is to submit your application, then a credit check and examination will be conducted on you. If you do not meet the credit score or have one, you are required to bring a co-signer who would partly take responsibility for your payment should you fail with the repayment.

5. When all is set, sign the necessary documents to get your loan approved.