College Money Loan

A college money loan can come from either the federal government or a private lender. A private or alternative college money loan differs from most federal loans in the regards that private lenders do not consider demonstrable financial need when distributing loan money. Instead, private lenders consider applicant and cosigner credit history and rating. The frequency of college students using private loans to finance college has risen 734% over the last decade.

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Existing types of private college loans help students pay for tuition costs and living expenses. Smart students will shop around and find the best deals before signing on to a loan program. Though many parents and students remain sceptical about the private funding option, loan research shows private loans now mimic the rates and terms of comparable federally backed loans.

Some beneficial aspects of private student loans include:

• Comparable interest rates to government loans
• Extended payment “grace” months after graduation
• Loan limits much higher than government offerings
• Efficient direct-to-consumer school loan money
• Tax deductible incentives for interest payments

Though 50% of students still rely on federal loans according to the Department of Education, the amount of money students can take out yearly in federally backed loans remains relatively capped at low numbers, despite college tuition costs increasing at nearly 200% the rate of inflation. Many students do not receive enough money to pay for the full cost of college tuition and are forced to supplement federal financial aid awards in other manners. For students in community colleges, the situation proves exponentially direr. Federal loans are available to only 10% of community college students as their respective university may or may not participate in federal loan programs. Federal loans do not, however, tend to cover all living expenses, and many students think no other option exists to help them manage their fiscal and academic responsibilities. Other students may pay for these living costs by carrying expensive credit cards, as evidenced by the $2,146 of credit card debt with which the average student leaves college according to National Association of Student Financial Aid Administrators. For these students, a private or alternative college money loan may become a better answer.

A direct-to-consumer college money loan may prove the best option for students who need money quickly or who need money to pay for cost of living expenses. The borrower applies for these loans via internet forms, such as those offered by Wells Fargo and Sallie Mae, or through direct contact with the lender. These loans are not mediated by the school as a third party, which cuts the overhead and allows the lender to offer lower interest rates and better terms. These loans can pay for a new car, rent on an apartment, or even day to day living expenses. The versatility of these loans makes them particularly useful for college students who struggle to pay all of their expenses while trying to achieve academically. Because lenders compete with one another and the federal government, private college money loans carry competitive benefits for the consumer, and offer a level of customer service that is not available otherwise. Students can also take out their full tuition amount from this lender, which negates the need to consolidate after college in some cases. Overall, they may prove a better option for some students and the savvy borrower will fully research all the options before making a choice.

Having problems finding money for college?
Find college money loan solutions today.