Student Private Loans

Chau Vuong

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Students loans. Two words that sound completely scary and foreign. It really is when you really have no idea on what to do with it, but you don’t have to be too scared once you got down to it

First thing that is most common to most students is the federal student loans or simply FAFSA. In addition to federal student loans, the FAFSA also determines your eligibility for other federal student aid like grants and work-study. It is best to do this first before making any private loan. It is also a long process, but it is a lot easier than private loans.

Now onto private loans. First, you must apply directly with the financial institution offering it. When it comes to finding the right private student loan lender, you’ll need to do some shopping around, but you can visit Citizens Bank, Sallie Mae, and Visit LendKey to see their rates. 

Secondly, you should time your application right. There’s no deadline for a private student loan application, so you can apply throughout the year. However, don’t apply for a private student loan with days or weeks before tuition is due. The process can sometimes take up to two months, so leave yourself plenty of time to properly finish the application.

Third, make sure to gather the necessary paperwork and information for the loan application. Some of the things that it will ask you are:

  • Social Security numbers.
  • Personal information, such as telephone numbers, dates of birth, and home addresses.
  • Gross annual incomes.
  • A list of any assets and their values.
  • Monthly rent or mortgage.
  • A copy of your latest tax returns.
  • Employment information, including a recent pay stub (within the last 60 days).
  • Secure a personal reference.

But you also need to make sure to have all of the school information available, such as the name of the college, when you’ll be graduating, how much it will cost to attend, and how much you are requesting to borrow to cover those costs.

Finally, properly submit the application form. Typically, you’ll start off by filling out your personal information as well as your cosigner’s info. The lender will likely ask for your financial information, which could range from just a pay stub to your tax return. Filling in your school information will include information about your graduation date, loan period, and loan amount. Some lenders will ask you to fill out a personal reference section on your private student loan application. You’ll likely have to agree to the lender’s terms and conditions, — including a credit check — by checking a box acknowledging that you have read the terms and would like to proceed with the application process.