03.13.07 | Private Loans…The New Alternative
If I asked 50 college students and their parents what their least favorite part of going back to school is, I’m pretty sure they would all say filling out the FAFSA. I mean lets face it, the FAFSA is a long, tedious, and confusing form that requires not only the students information but the parents information as well. As if it’s not hard enough to get your parents to fill out the FAFSA, now you have to hassel them to get their taxes done on time. It’s a long process with usually a short reward. Most of the time the money awarded off of a fafsa is hardly enough to pay the cost of tuition let alone all the other expenses associated with going to school. Overall, filling out the fafsa has its place and is necasarry but it is not the only answer.
With more and more students needing extra money to pay the balance of their tuition or for related expenses, private loans are becoming the new alternative. With competitive rates and a quick turn around, private loans and private consolidation are on the rise. The reasons for this is as follows…
1)No Fafsa! The private loan application is a standard one page form and is done in less than 10 min.
2)Competitive interest rates
3)You can borrow up to 40,000 for the year
4)Approval in just as little as five days
5)Money is sent directly to applicant and not to school
6)Like federal loans, repayment can wait until you graduate.
With the above being said, it is no wonder why private loans are becoming so popular. Like anything else it has its downside but apparently not enough to deter students and parents from wanting to take them out. It is definitely a great alternative and something to look into. You can find out more information at www.alternativestudentloan.com.
If any students or parents are reading this I would love to hear your feedback.
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