Private Student Loans
Get The 411 On Private Student Loans
Everything you need to know about the Private Student
Loans is right here.
We not only reduce your learning curve concerning this widely misunderstood student loan, we also provide you
with the best sources and resources for acquiring a Private Student Loan...
There’s a lot of misinformation about Private Student Loans and in this session, the Student Loan Whiz, will
proceed to clear the air concerning this increasingly popular source of student loans.
What is a Private Student Loan?
A Private Student Loan is a loan made to students by private
Various banks, credit unions and specialized education lenders provides these loans to fill in the gap left when
scholarships, grants and federal loans don't cover the entire cost of attendance.
When Should a Person Apply For A Private Student Loan?
Only after exhausting all other
financial aid avenues; Scholarships, Grants, Perkins Loans, Stafford Loans, Parent PLUS Loans, Grad PLUS Loans,
Family funding and work study programs. Private student loans should be your last resort.
How Does a Person Determine If They Should Apply For a Private Student Loan?
The measuring rod is if after receiving scholarships, grants, federally school loans, family funds and using
savings and your educational expenses are still not covered, that would be the time to consider a private student
How Does The Private Student Loan Application Process Work?
Once you decide on a lender and
have determined how much you want to borrow, with most lenders you apply online or complete an application over the
phone. Generally speaking, to complete a private student loan application, most lenders will require the following
- The borrower’s full name
- The borrower’s social security number
- The borrower’s date of birth
The borrower’s permanent address and the number of years they have resided there (no P.O. boxes)
- The amount of their monthly rent, lease or mortgage payment
- The borrower’s home phone number
- The borrower’s current occupation and position
- The name the borrower’s employer and how long they have been employed by them
- The business phone number of the borrower’s employer
- The borrower’s gross annual income
- Personal references for borrower, (to include: name, address, home/business phone number)
- The name of the borrower’s school (or the name of school the student for whom the loan is for, is
- If applicable, the social security number, contact and employment information for the co-signer
Do Private Student Loan Lenders Check Credit?
The answer is, “Yes!” Private student loans
are approved or denied based on your credit or that of your co-signer. This means the lender will review your
credit score and credit history, and that of your co-signer, to determine your eligibility and the rate and fees of
Most lenders require both the borrower and co-signer to have a strong credit score (good to excellent) in addition
to meeting other criteria, such as no negative credit history (missed payments or defaults), debt-to-income ratio
(amount of debt vs. your current income), and even proof of current employment and income.
Are There Any Fees Associated With Private Student Loans?
Yes there are; almost all private
student loan lenders insert origination fees.
What Are These Fees Based On?
They are based on your credit score and history (and your
For more FAQ's on Private Student Loans
Brad Matheson is a professional Financial Consultant who specializes in helping businesses and individuals
resolve their debt issues. He believes that all debt problems can be solved with the right debt advice and aspires
to help Americans learn all of their debt options and exercise all of their rights. Says, Matheson, “Don't allow
the Student Loan Debt crisis or a Defaulted Student Loan to hinder or block your
career aspirations or stymie your financial dreams.”