Hello people…
I’m exploring private student loan options and would appreciate any suggestions or advice you have. If you’ve had experience with private student loans or know of reputable lenders, I’d love to hear from you… TIA
General Tips:
Federal Loans First: Always prioritize federal student loans over private options. Federal loans typically offer lower interest rates, income-driven repayment plans, and forgiveness programs. Ensure you exhaust your federal loan options first by completing the Free Application for Federal Student Aid (FAFSA) every year (https://studentaid.gov/).
Borrow Only What You Need: Private student loans can help bridge the gap after federal loans, but be careful not to borrow more than necessary. Consider all your educational and living expenses when determining the loan amount.
Shop Around and Compare Rates: Don’t settle for the first lender you find. Get quotes from multiple private lenders to compare interest rates, loan terms, and fees.
Reputable Private Lenders:
Here are a few reputable private lenders to get you started. However, it’s important to do your own research and compare rates:
Earnest: Known for potentially lower interest rates, with autopay discounts.
Discover: Offers private loans with no application, origination, or late fees, and rewards for good grades.
Sallie Mae: A major provider with extensive experience in private student loans.
Many lenders allow you to pre-qualify for rates with a soft credit check, which won’t affect your credit score. This can help you compare rates without committing to a lender.
To assist pay for some summer classes I took, I took out a single private loan with Discover for slightly less than $8k at a fixed rate. In 2016, I entered a repayment plan. Never missed or postponed a payment.
We just paid the remaining $4800 last month using our tax return. I returned about $18,000 in total. I advise everyone I know to avoid taking out a private loan.
When I was exploring private student loan options, I researched various lenders and compared their interest rates, repayment terms, and benefits. I found reputable lenders like Sallie Mae, Discover, and Citizens Bank offered competitive options. I also read reviews and sought advice from financial aid advisors to ensure I made an informed decision. By carefully comparing and considering all factors, I managed to secure a loan that suited my financial needs and helped me continue my education smoothly.
Federal Family Education Loans (FFELs) were financed by commercial lenders and guaranteed by the federal government. These are sometimes known as guaranteed student loans. No new FFEL program loans have been issued since June 30, 2010.