You can borrow
up to $40,000 each academic year see loan limits
for both undergraduate
and graduate level programs. Private Student Loans can
be used to make up the difference between total cost
of school and any financial aid that the student may
receive.
The advantage of Private Student
Loans is speed and processing. Simply
submit your application and receive funds in little
as 5-10 days if you qualify.
Fills
the Gap
since the cost of college can
be higher than most financial
aid awards, private student loans
are used to fill the gap between
cost of education and financial
aid received.
Quick
Processing
unlike federal loans that are processed
through the college, the processing
and distribution of funds is through
the student thus speeding up process
time.
Availability
of Funds
private student loans can be used
for more education-related expenses
such as personal computers and
other related supplies.
No
Federal Filing
you do not have to file forms
with the federal government in
order to apply for private student
loans. Private student loans are
perfect for students who need
additional funds to close a gap
or pay for additional study.
Disadvantages of Private Student Loans
Credit
Check Required
you must have a credit history
and verifiable income in order
to qualify for this loan; since
many students do not meet these
qualifying parameters, a co-applicant
may be required on the application.
Higher
Interest Rates
private student loans have a higher
interest rate than federal student
loans: see
product terms and rates
Multiple
Borrowings
you may need to file and apply for
a loan each academic year.
