Student loans have been all over the news in the past year, and borrowers are researching college financing options more than ever. In light of this, it’s important to know the facts so you can make better-informed decisions about paying for college.

1. 90% of private loans require school certification

Schools must approve a loan based on the student’s cost of attendance. This ensures that borrowers aren’t taking out more than they need, keeping them out of further debt.


2. More than 90% of approved applicants applied with a cosigner

Because many students have little to no credit history, most loans will require a credit-worthy cosigner to be approved. The good news is that cosigner release is now common among private loan lenders, allowing the cosigner to be released from obligation after a certain number of on-time monthly payments. (more…)

If you have had any issues with your federal student loans, you may be familiar with the Federal Student Aid Ombudsman office. This office is responsible for mediating issues with your federal student loans or financial aid office. Students weren’t lucky enough to have this luxury for private student loans, that is, until now.

The Consumer Financial Protection Bureau created a private student loan Ombudsman office to handle consumer complaints with loan lenders, servicers, and collectors.

What does it really mean for you, the borrower? Well, for starters, a single federal agency is now responsible for overseeing private student loans, which will hopefully provide easy answers to families seeking assistance. This new office will allow families to file complaints, at which point the office will contact the loan lender to help resolve any issues. These could be issues such as you were billed while loans were in deferment, or your payments were not applies as specified. The CFPB will now be able to help resolve loan repayment issues between you and your private loan lender.

While this office does handle complaints, they are also available to answer questions you may have about borrowing a private student loan. For more information or to submit a complaint or question, visit http://www.consumerfinance.gov/complaint/ or call 1-855-411-CFPB.

If you’re like most students, federal aid may not cover your whole Cost of Attendance. Between tuition, books, housing, and all of the other expenses you face in college, federal financial aid can only stretch so far. To help fill the gap, students turn to a variety of sources to help them get to that diploma.

Some of the most common ways students pay for school include private loans, part-time jobs, and parental help, just to name a few. To learn more tips and tricks to help pay for school, check out the Fill the Gap infographic.

» View the Fill the Gap Infographic: How Students Pay for College

Now it’s your turn. We want to know how you pay for school. Did you get a private loan? Maybe saved up money since middle school?

Leave a comment and let us know how you pay for school!

Greetings financial aid seekers and enthusiasts! We just wanted to keep you updated on the happenings in the world of private student loans. So read on to learn about loan news and what’s in season!

Updated Interest Rates

PrivateStudentLoans.com is excited to announce a recent update from our partner, Wells Fargo bank! Wells Fargo now offers a fixed rate student loan, the first major bank to do so since the credit crisis. Unlike most other student loans, which offer variable rates that are tied to a benchmark rate, this new fixed rate loan would prevent future spikes in interest, ensuring one rate for the term of the loan. The exact rate is determined by the applicant and co-cosigner’s credit score and history. Students can expect to see more banks offering better terms on student loans within the next year, including lower interest rates, and more fixed rate options.
(more…)

There are a lot of private student loans out there, so finding the best one for you can be a difficult and confusing experience. Taking out a student loan is a big decision, and like all big financial decisions, you must be well informed before applying.

A tool that could prove very helpful to you in your search for a good deal is our private loan comparison tool. It allows you to compare some of the most popular lenders and review what benefits their loans offer. Plus, if you find a good option, you can apply for a private loan right there, making it a much simpler process. While the comparison tool is a great help, you also have to know what to look for. To help with this, make of list of what loan benefits are most important to you, that way, you can more easily narrow down your choices.
(more…)

So you’ve gotten your financial aid award package from your schools but you didn’t get as much federal aid as you had hoped. Now what? Well, there are some other financial options for you to consider.

Scholarships

Scholarships can be a great way to fill the gap between the aid you received and the aid you need. ScholarshipPoints.com gives away monthly $1,000 scholarships, and the best part is, it’s open to all students enrolled in college! There are none of the restrictions that most other scholarships have, if you participate, you can win! The program is pretty simple too- you earn points by completing surveys, or reading blogs, then you can enter these points into our monthly drawings! Easy as pie. PLUS, there are quarterly $10,000 drawings, so there’s really no reason no to join.
(more…)

Deciding on which student loan to apply for can be a headache for both parents and students. With so many aspects to consider, such as repayment plans, interest rates, and loan benefits, deciding on the best loan for you can be both confusing and difficult.

If a student is not eligible for federal loans, or is already taking the maximum, there are other loan options to consider. There is a variety of private student loans to choose from, or you and your parents may consider a Parent PLUS loan. However, these loans have some important differences to be aware of.

The most important aspect when choosing between a parent PLUS loan and a private loan is the borrower. A parent PLUS loan is taken out in the parent’s name and the responsibility legally rests on the parent to repay it. A student and parent can have an agreement where the student pays the loan, but remember, if it were to go into default, it is under the parent’s name not the student’s and is therefore the parent’s responsibility. Private loans, however, will be taken out in the student’s name and all repayment responsibility falls upon the student.

Another important difference to consider is financial disclosure. Private student loans do not require any parent or student information like which you would put on your FAFSA. On the other hand, Parent PLUS Loans require you to file a FAFSA which means you will have to provide financial information.

There are a number of other options to consider when deciding on a loan. Visit StudentLoans.com for more information on this differences between Private Student Loans vs Parent PLUS Loans.

My mission: In one month, learn everything there is to know about the financial aid process, and federal student aid programs so that I can get a jump start on my applications.

Armed with: ejacobs (Student Advocate from FinancialAidForum.com), a variety of web resources that I found from the Student Loan Network, some books and packets, federal student aid guides, the web-o-sphere, and my peers.

Reason: I’d like to go back to school, but I’m not swimming in cash. I recently read that incoming students often underestimate how much financial aid they will get from the government and fail to take advantage of it. I’m determined to find the maximum amount of aid possible for my situation.

There are a variety of online resources I found helpful in the start of my learning process, and I will share some of them with you below. (more…)

Hey, fellow college kids! It’s the time of year again for school to start. Are you wondering how you’ll be able to pay for it? Don’t let a school’s price tag or lack of financial aid scare you away. Be sure to look into getting a private student loan.

Private student loans are offered by a wide variety of companies, and allow users to borrow up to the full cost of their education.  Besides your actual school tuition, you can also use a private student loan for textbooks, housing, meals, and any other school-related fees. Unlike federal loans, interest rates for private student loans vary, and there are absolutely no deadlines. While scholarship applications and FAFSA enforce deadlines, you can apply for a private student loan at any time.

To qualify for a private student loan, you need to be a United States citizen or permanent resident applying alongside a co-signer with good credit history, and be enrolled in school at least half time.  Find out what your options are now!

If you have primarily been looking to receive financial aid through federal loans and scholarships, you have no doubt been exposed to deadlines. Well, with a private student loan, there are no deadlines.

The biggest advantage of a private student loan is its flexibility.You can take out up to the total cost of your education (tuition, housing, fees, books) or you can just take out a few bucks for a new laptop or textbook.

All you have to do to qualify for a private student loan is be a U.S. citizen or permanent resident with a credit worthy co-signer. You must also be enrolled at least half time or greater as defined by the school (typically 6 credits). Check out your loan options today!