article directory


Home | Top Editorials | Popular Content | Article Directory | Help/Faq's | Submit Articles | Account Login
Editorial Search







:: Main Articles :: Finance / Investing



Private Student Loans What You Should Know About Using This Loan For College
Finance / Investing Author: Elisheva Wiriaatmadja
Private Student Loans What You Should Know About Using This Loan For College
What You Should Know About Toxic Private Student Loans
Why would anybody consider taking out toxic private student loans?

The cost of university education is rising, outpacing the consumer inflation rate. As if families are not enough burdened with the current economy, rising unemployment rates and risks of getting kicked out of their homes, high education costs are putting an even greater burden to their shoulders. The annual education cost could reach over $30,000 at some universities.

Students are always looking for financing to further their education and usually their first and easy option is to take out private student loans. But this article encourages students to make a wise decision and beforehand understanding what the advantages and disadvantages are of private student loans.

Wise students would choose alternative financing options besides private student loans. They would exhaust all their other options of getting free money first, whether it is government grants or scholarships. These financial aid is free money that you never have to repay. The balance remaining after all the free money is used to pay your education is what students are considering paying with student loans. However, before taking out any private loans, you might want to consider taking out federal student loans which can be consolidated later on and also are eligible for student loan forgiveness programs.

When every financing source is exhausted, look into the advantages and disadvantages of taking out private student loans:

The advantages are:

Quick approval process: Private student loans are usually quickly approved in as little as five business days. The funds will be immediately availabel to the student. Federal student loans, in comparison however, takes years and the processing is usually completed throughout the college.

More funds: Financial aids such as scholarships or government grants usually are not enough to cover the whole cost of college education. Private student loans usually can lend you more money than even the government-backed loans. The loan amount you can take out with private student loan companies are limited to $30,000 annually.

Less restrictive: Federal student loans are usually more restricted in how the fund is used. Students, however, are allowed to use their private student loans to pay other things such as a laptop.

The disadvantages are:

Credit check: In order for you to be eligible to get a private student loan, the lender will have to check your credit history. Only creditworthy individuals will be approved.

Higher interest rate: The best interest rate you can get are usually given by federal student loan lenders. Besides, government-backed loans are usually fixed while private student loans can go up and down each month and are generally much higher.

Multiple loans: Although this is also true with federal student loans, private student loans must be applied for each academic year. Therefore, by the time you finish your education, you will have different loans with different interest rates charged over them. The difference is that in the end you will be able to consolidate all your federal student loans but due to new laws, private student loans have been forced out of the loan consolidation business. Therefore, many students now are having difficulties in repaying their multiple private student loans.

No loan forgiveness program: There are student loan forgiveness programs available for students with federal student loans. Unfortunately, students with private loans will not have the privilege to be eligible in getting a loan forgiveness at some point in the future after they graduate.

Now that you know the disadvantages and advantages of private student loans, you should be able to make a wiser decision for your financial future.
Total Views: 458 | Approx word count : 638 | 10/30/2010





MarketersDomination Related Articles
Gold Price May Hit USD5000 in 2020 By: Elisheva Wiriaatmadja - God price just hit $1603 which is its all time. According to Standard Chartered Plc the price of gold may soar to as much as $5,000 an ounce by 2020 as production growth slows down and demands from China and India increases. Hong Kong base...
If You Do Not Have Home Owners Insurance Be Careful By: Evan Povich - Are you looking for a excellent homeowner insurance quote but not quite certain what a Homeowners Insurance Policy can cover? If you answered yes to the preceding question that this report is an absolute need to read as it goes into detai...
3 Tips For Discounts For Young Drivers By: Evan Povich - Discounts When You Buy Car Insurance It is a fact that searching for inexpensive young driver car insurance can be a hassle. Teen drivers have very little experience on the street and auto insurance companies deem this high risk. Higher ris...
Student Loan Forgiveness and Student Loan Repayment Programs By: Elisheva Wiriaatmadja - Stressed out college graduates now have opportunities to get a relief on their student loan debt by programs such as student loan forgiveness programs or loan repayment programs. In return for choosing a career in military service or voluntary work a...
Baby Boomers and Investment Income Stream By: Champia Inspector - There are over 70 million baby boomers in America, their presence the driving force behind our economy. Boomers are not just supporting the housing market now. They have been keeping it going for the last thirty years. Something changed, though, ...
What are the pros and cons of payday loans? By: Elisheva Wiriaatmadja - Grabbing a cash advance is the easy way to ease the burden on you and your family. These payday loans are easy to get, and many people love how much it helps them relieve the stress of making it through the next month. Often, you will fill out a simp...
Home | Top Editorials | Popular Content | Article Directory | Support | Terms | Privacy | Account Login

Article Marketing | Article Directory | Article Spinning | Content Syndication | Article Distribution

© 2018, All Rights Reserved.
All other copyrights belong to their respective owners. Internet Marketing Forum