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
Low Cost Life Insurance Strategies By: Evan Povich - Looking for low cost life insurance purchase life insurance it is vital to look at your reasons behind life insurance before getting life insurance quotes. Buying life insurance is a big decision not only applies to you but it affects the rest of you...
Private Loans for School - Beware of Legalized Blood Suckers By: Elisheva Wiriaatmadja - Private loans for school may have a certain appeal for young Americans who are looking for funding to continue their education. Unfortunately many of the students applying for a student loan are just too immature and inexperience to even come to the ...
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...
Before Taking Out Private Student Loans By: Elisheva Wiriaatmadja - Why would anybody consider taking out toxic private student loans? With the economy not going any better, prices are going up including the cost of university education. Families are alrady burdened with rising unemployment rate and the risk of ha...
Gerald Celente Going Back to Gold Standard Will Not Save the US By: Elisheva Wiriaatmadja - Gerald Celente on Russia Today America drops the most shocking news for Americans. While the whole world is looking into the gold economy in order to save their own currency from the slumping greenback, Celente does not think that following their foo...
The Power Of Balance Transfer Credit Cards By: Melanie Simpson - Steering clear of Credit Card APR Charges Together with paying interest on the money you borrow when utilizing a credit card, there are an assortment of fees that can find yourself costing you some important change. Nevertheless by going throug...
Home | Top Editorials | Popular Content | Article Directory | Support | Terms | Privacy | Account Login

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

© 2017, All Rights Reserved.
All other copyrights belong to their respective owners. Internet Marketing Forum