Supplemental Student Loans for College | 09.16.10
Often times, federal loans just aren’t enough to pay for the full gamut of education expenses in college. In my personal experience, federal aid usually covered about 70% of my tuition/fees, but I had to seek alternative financing for the other 30%.
A supplemental student loan (also known as a private loan) can help in this department by covering up to your full cost of attendance. This can include costs such as off-campus housing rent, books, lab fees, a computer and of course, your tuition.
A supplemental loan is different from federal loans because it has a variable interest rate, usually based on the LIBOR index or Prime Interest Rate. The vast majority of loans fall between 2.8% – 10% APR*.
In addition, to be competitive with federal loans, many private lenders offer specialized incentives to make their products more enticing to borrowers. Some select examples of these would be co-signer release, graduation rewards and interest rate reductions.
We always recommend that you pursue federal options first, but if you still need more money for school, compare your private student loan options.
*This range is completely dependent on how each bank calculates its rates. Your milage may vary.
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