Finding the best private student loans to pay for college isn’t easy. Everyone wants a secure future. With the fast-paced and rapidly changing landscape of today’s technological era, getting a good job with a proper salary and scope for growth is the target of every student. And it can be said without a doubt that one of the best ways to achieve this is through a degree from a good college. It is a universal truth that a good education can pave the way for a brilliant career and the future of your dreams.
But as admission season approaches each year, one fact comes to the forefront of all students and their parents alike: college education is costly. And if you do not come from an affluent background you may find it hard to afford the high tuition fees, along with additional expenses for books, lodging, and other items.
However, there is a solution to this as well. There are many private companies that offer the option of taking out a student loan for your education purposes. These companies are reputable organizations that are experienced in the field of finance and can successfully guide you along the process of financing your college education.
Now let us explore some of the best places where you can get a private student loan.
Compare the Top Private Student Loans in 2019 to Pay for College
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Here is a list of the best private student loan programs that will help you pay for you college tuition in 2019.
Credible
Credible is a unique option for you to explore because it aggregates multiple lenders under its umbrella. Through Credible, you can compare multiple loan packages you may be eligible for from multiple lenders, and then choose the one best suited to you. Credible does not charge any processing fees. Interest rates vary from lender to lender and also based on the terms of your loan. There are no penalties for prepayment, and you get the benefit of proper customer support. Most importantly, Credible makes the entire system of taking a loan user-friendly.
CommonBond
In spite of the fact that CommonBond charges a 2% origination fee, it is an important option to check out if you are in need of a student loan. CommonBond offers student loans to college students as well as parents. Interest rates may be fixed or variable, and payback periods range from 5 to 15 years. There are no penalties for prepayment, and you even get a rate reduction if you set up automatic payments with them. CommonBond offers four repayment options, along with the facilities of cosigner release and deferment of payment until the completion of the academic program. Also, the option of cosigner release makes CommonBond a suitable option for taking a student loan.
Citizens Bank
Citizens bank is yet another lender with no origination or prepayment fees. Citizens bank offers student loans under the Citizens One banner. Loan programs are available for both students as well as parents. Citizens Bank offers extra discounts of 0.25% for automatic payments and loyalty programs. Interest rates are competitive with both fixed and variable options available. Loan repayment periods range between 5 to 15 years. Citizens bank also allows you flexibility in terms of the amount you borrow depending on your degree program. It also offers the benefits of cosigner release after 36 consecutive payments and has the option of making interest-only payments during the college years, thus reducing the burden on the students.
College Ave
College Ave is a specialist in student loans, and is an internet-focused company; hence the processing and approval of loans is done very fast. College Ave does not charge any application or origination fees, and there are no prepayment fees either. You get discounts on the interest rates if you set up automatic payments. As with the other lenders on our list, interest rates may be fixed as well as variable according to your choice, and repayment terms range from 5 to15 years. It also allows you to defer payments until after your course completion.
LendKey
The novelty of borrowing from LendKey is that they grant loans in association with community banks and credit unions. As a result, interest rates tend to be lower than that of most competitors. Offering loans only to students, LendKey does not charge any origination or application fees. Interest rate is reduced if you set up automatic payments, and you also get to make interest-only payments during your study years. Repayment periods range between 5 to 15 years, and there are no prepayment penalties.
Eligibility Criteria For Private Student Loans
In order to be eligible for a private student loan, you need to fulfill certain requirements. All lenders have their own specific terms and conditions; go through these very carefully to know which is best suited for you. Usually, factors such as present income and credit scores are taken into account when assessing a loan application. Students usually need to get the help of a cosigner to qualify for loans, although those with job offers and excellent career prospects may be able to do without the help of a cosigner. Further, the college you are applying to is also taken into consideration.
Benefits Of Private Student Loans
Contrary to popular belief, private student loans have their own advantages that make them attractive to so many students who choose them over federal loans. Most federal loans are usually limited in the amount that you are allowed to borrow; private student loans do not have any such caps on the amount you can have access to. Further, private loans also have lower interest rates and can offer you multiple benefits and discounts to suit your financial needs. Most private student loans do not have any processing charges and can be disbursed very fast. Many private lenders offer the facility of you taking the help of a cosigner in obtaining the required loan amount. And the interest of private student loans may be tax deductible, based on the parameters of the arrangement.
Getting a Private Student Loan Doesn’t Have to Be Hard
The process of applying for and being granted a private loan is a complex process that requires careful navigation. Be sure to weigh all options carefully before taking the plunge, for private loans do not offer the same protections as federal loans do. However, if used wisely, private educational loans can be a great way for you to secure a stable future.