Private school loans

The volume of private school loans has increased dramatically over the last years, and it is expected to surpass federal loan volume by 2025. This is partly due to the increase in the annual and aggregate limits starting with 2008. The other problem was the economic crisis of 2007-2010 that limited the lender access to loans. If the federal student loan programs expand, chances are that we'll witness a new shift from private school loans to federal programs. Yet, without federal loan limits increasing every year, the private student loans growth will remain unhindered.

Make private school loans a second option!


Don't go for private school loans unless you have to! You should first do your best to qualify for grants, work-study and other types of student aid available from the federal government. In order to do that you should file the Free Application For Federal Student Aid or FAFSA. If you are an undergraduate student, you may find better repayment terms and less expensive options with the Federal PLUS loan rather than with private school loans.

Check the fees!

Even if some private school loans look very promising on paper, you should not trust anything that appears too good to be true. Fees often lead to a significant increase of the loan costs. Even if the loan has low interest rates, that won't matter too much if it has high fees. For example, 3% or 4% in fees represents pretty much the same thing as a 1% higher interest rate for the full loan.

Make sure you compare loans correctly!

The Internet now abounds in tools to compare private school loans. The problem nevertheless lies in the fact that you have to compare loans in the same category and with the same repayment terms in order to get an accurate estimate of what lies ahead. Therefore, always make sure that you generate an apples-to-apples comparison between the various private school loans. There are websites that provide the right tools for it.

Get familiar with the terminology!

You can't compare between private school loans and make sense of the results unless you know a thing or two about loans and their specific language. It's confusing and a bit difficult for the beginner, yet an absolute must to make a good loan choice. Find out how loans vary according to the LIBOR index and get familiar with concepts such as the Prime Lending Rate.

Private school loan

True comparison shopping for a private school loan involves analyzing multiple lenders' offers with terms and conditions, repayment, fees and real-time rates. It's a daunting task that will take some time, but the effort is worth making on the long run. You should only consider a private school loan when you've exhausted other options such as federal grants, scholarships and even federal loan programs that offer a lot more rewarding lending terms than private lenders.


1. Check websites that work as a marketplace for student loans, because they provide information on various lenders including non-profit organizations, credit unions and traditional banks.

2. Compare the terms of the private school loan instead of focusing on the rates alone. The importance of all terms is incredibly high due to the fact that they determine the repayment pattern, the length of the loan and even the forgiveness options.

3. Look into the monthly payments as well as the total cost o a private school loan. These aspects are of paramount important because they help the student figure out the amount students expected to pay once they graduate. Can you afford it? Careful comparison and loan analysis saves you from over-borrowing.

4. Research various lenders! Even when you've identified possible loans that meet your expectations and needs, your search is not over. You should also look into the credibility of the lender, the customer service provided and the student-friendly platform. How is that relevant for a private school loan?

A lender that professionally meets the needs and requirements of student clients will create solutions that are student-focused. This aspect has tremendous relevance given the fact that lenders may be specialized in other areas without catering to educational loans in particular.

5. Ask a specialist!

Before you decide on a private school loan you should also seek objective professional advice from an unbiased party. There are lots of financial advisers that do not have an interest in recommending one private school loan or another, and in return for the fee charged per their service, they will provide you with a very realistic analysis of a private school loan.

Therefore, do not consider that the lender's representative is the only specialist you need to talk to about a private school loan. Their interest lies with their employer, the lender, that wants to win you over as a customer. An informed decision should thus be based on an objective analysis of your situation together with that of the loan terms.

Private college loans

Private college loans often help pay for the school expenses that remain uncovered after using scholarships, grants or federal student loans. Such a loan might be an answer to your troubles when it comes to paying for more than just tuition and fees: rent (room and board), laptop, trips home and textbooks. Nevertheless, it is of paramount importance that you don't borrow too much. Calculating the amount that you need and sticking to it represents the wisest decision, even if you feel tempted to get more.

Here are some of the aspects to look into when it comes to choosing private college loans.

Are you eligible?

- US citizenship or permanent residence is required.
- You should be enrolled with a lender-eligible school.
- You should be creditworthy or have a creditworthy co-signer.

These eligibility criteria are pretty general, and they often vary for private college loans depending on the lender. The credit requirements pose many difficulties since numerous students don't have a credit history, nor any income or employment information. Then, you need to get a co-signer (a parent would be ideal) to have the loan approved.

What amount do you need to borrow?

This is another aspect to bear in mind and look into when searching for private college loans. The minimum and maximum loan amounts also vary by lender. The student needs to contact the school and get an official document stipulating the total cost of attendance. Based on the information provided by the school, lenders may then calculate their own cost-of-attendance figures.

Check the terms of repayment!

In order to realistically evaluate your options for private college loans, you need to be informed on the following:

- the time repayment is due to begin;
- whether there are any prepayment penalties;
- whether there are deferment or forbearance benefits.

You need to check deferment and forbearance benefits in particular because the majority of private college loans don't allow you to postpone loan payment when you experience financial hardships due to unemployment. Deferment and forbearance are available usually with federal loans, and only few private lending programs include such benefits.

Don't rush into contracting a private loan until you have exhausted all your other options of getting free money or federal loans for your education:

- scholarships and grants;
- low cost federal student loans;
- parent federal loans etc.

If all these don't help you cover the full cost of your education, then you can look into private college loans too.

Private college loan

There is not just one type of private college loan; the diversity of lending programs proves overwhelming at times for the individual who needs to make a choice. However, what every borrower ought to know is that private loans have higher interest rates and stricter eligibility requirements as compared to federal loans, for instance. You should only apply for a private college loan when you've exhausted all the other options to pay for your education:

-scholarships and grants;
-family savings;
-low-cost federal loans;
-parental federal loans.

All the loans provided by the federal government are more convenient than any private college loan because they have flexible terms, they include forbearance and deferment benefits, the interest rate is lower and the credit history is not relevant for eligibility. Unfortunately, a federal loan usually has a low higher limit, which means that the money you get from the federal government won't cover the full costs of your education.

Make a calculation of the full expenses based on the information provided by the college. Then, you'll know exactly how much money you need, and you can start putting it together from several sources. You will thus need a lower amount in the form of a private college loan. The private lending market should be the last place to 'visit' when it comes to paying for your education.

Then, it is highly relevant to choose a loan that meets your needs. The selection of the private college loan depends on the amount borrowed each year, the school you attend and your eligibility. Check the loan selector tools available from many financial institutions to determine the right option for you. Always compare apples to apples, because loans for undergraduate education differ from those for graduate and health professional schools.

Look into the fees and repayment terms of the private college loan, because they drastically increase the costs of the loan, even if the interest rate is low. Many people make the mistake of basing their choice of private college loan on the interest rate and the calculation of the monthly payment only. These become partly irrelevant if there are high fees that increase the overall expenses. Then, you won't be making much of a saving.

In case you have already contracted a private college loan, you will start payment on it six months after you graduate. If that time has come, you can expect to receive all sorts of letters and messages from lenders in your mail box.

Medical school loans

There are various types of medical school loans out there: the issue is what to shop for and where to start.

- File your Free Application for Federal Student Aid  (FAFSA).
- Take all the free money you can to pay for your college education: scholarships, grants or any other form of financial aid. Parents' savings could make a difference when paying for your education.
- Go for federal medical school loans.
- Check with the college you want to enroll with to learn the full cost of your education. Then, you'll know how much money you need.

Private medical school loans are very expensive, and you should only turn to these to supplement the money from other sources, when it is insufficient. With medical school costing a fortune, it's unlikely that federal loans will cover the full costs of medical education.

Even so, you should not rush into contracting a private loan before shopping carefully for the right product to suit your needs. First of all, you ought to meet the eligibility requirements:

- good credit history or a co-signer with excellent credit;
- U.S. citizenship or permanent residence;
- acceptable income etc.

The conditions for private medical school loans vary a lot, which is why you should carefully look into all the requirements and make sure that you agree to all of the loan features. Don't check the interest rate alone. Other major aspects to be concerned with include:

- the extent or lifetime of the loan;
- fees;
- deferment or forbearance benefits;
- consolidation options;
- customer service and more.

There are lenders specialized in medical school loans. They provide targeted services that correspond to the needs of medical students. You should choose a specialized lender over a non-specific one, because a better focus on your educational field means that you will have the right loan features for your case.

Repayment for medical school loans starts after you graduate, however, depending on the type of loan you have contracted, you may have to cover for the interest accrued during the years of study. Only subsidized federal loans don't charge an interest rate for the time you spend in school. Otherwise, with any other loan type, you will be charged for everything.

Compare the various medical school loans carefully, to make sure that you enjoy the best and most adequate features for your case. That also enables savings, and prevents you from getting over-burdened by debt.

Law school loans

Numerous law school loans are available for people who need to pay for their law studies. Academic education in law is infamously expensive, and even if the student will earn a good income, that won't be the case right after graduation. There is quite a lot of legal grunt work to go through for a number of years before you actually enjoy good wages. In case you need information on ways to pay for your law studies, take advantage of the numerous websites that provide access to grad school loans, private loan sources and various other loan programs.

Graduate federal law school loans

Stafford federal loans are still a popular option for financing law school. They are subsidized and unsubsidized, and they enjoy the highest popularity of all thanks to their low interest rate (7%) and the beginning of the payment after graduation. Moreover, for subsidized federal law school loans, the borrower does not pay interest rate for the period of education. For the unsubsidized Stafford loans, the interest continues to accrue over the academic years even if repayment begins six months after graduation.

Borrow only what need!

Rushing for private law school loans without filing the FAFSA first is the wrong way of paying for your education. You should only use private loans to cover some limited expenses, not pay for the full costs of the law degree. Only try your way with private law school loans after you have applied for all the federally sponsored money that you have access to.

Talk to the school to estimate costs!

In order to know what amount you need for every academic year, you should contact the school and get an official estimate. Most lenders require such a document for approving not only law school loans but various other student loans as well.

The downside of private loans!

There is a very good reason why private law school loans should be the last resort:

-they are more expensive with higher interest and monthly rates;
-there are fewer or no deferment and forbearance benefits at all;
-consolidation often extends the life of the loan to 30 years etc.

Qualifying for scholarships and grants as well as using personal savings will help you reduce the amount you get in the form of law school loans. Don't rush into borrowing money before you exhaust all the other alternative sources of 'raising' funds for your education.

Medical school loan

Getting a medical school loan is not difficult these days, yet it is very expensive. First of all, medical students are highly targeted by lenders because they have a high earning potential and they usually don't leave medical school until they get their MD. High variations of the borrowing limits exist, which is why the applicant needs to look into the costs of medical school loans carefully before making a choice. Unfortunately the costs of medical education have skyrocketed over the last two decades (312% in public health schools and 165% in private schools).

The decisions people make with a medical school loan impacts on their credit and future decisions. Statistics indicate that students who borrowed more than $5,000 for college, are less likely to pursue superior academic degrees. This usually happens because the debt burden is too high. In order to stay in control of your finances, you should use a program that helps you go through the complexities of student debt more easily. Moreover, medical school borrowers depend on a certain level of financial literacy when it comes to deciding on the right way to manage their medical school loan.

You could put one of the numerous online tools to good use when it comes to planning for a convenient payment of your medical school loan. Lots of programs have been designed to help med school graduates, residents and students keep track and organize their loans. Medical students can thus get a better view and a higher understanding of their debt thanks to the repayment scenarios generated with tools such as Medloans, Organizer and Calculator, for instance.

Try to get access to a scholarship first before you apply for a medical school loan. However, there are very few scholarships available other than those offered by medical schools. Make sure you check the offer of lenders specialized in medical loans, in particular, because their focus on medical education gives the borrower more benefits. Here are some examples of lenders specialized in medical loans:

-Access Group;
-AAMC Medloans;
-MedInvest;
-MEDFUNDS etc.

Private medical school loan often becomes a necessity due to the fact that federal loans provide insufficient funds for completely covering the costs of education. Given the extent of medical education, the aggregate limit is met for med students before they've completed education. In case you decide to choose a private loan, make sure you do everything in your power to mend your credit or get a worthy co-signer. Otherwise, medical school loan terms are not at all convenient for you.