Monday, April 27, 2009

Locating Private Student Loans

By Colby Mangum

If you decided it's time to go to college, but you are worried about the cost, student loans might be able to help. For people who can't qualify for a government loan in the amount needed to cover tuition and books, there is the option of applying for a private student loan.

How do you find private student loans? One of the best sources of information is almost always going to be the financial aid department at the college you are attending. It's the department's job to help students get the funding they need to attend school. Usually, they will have a pretty good idea of the lending institutions that offer the best student loans.

There is a private loan called the Federal Family Education Loan. Even though it is offered by a private lender, the federal government backs the loan. Not all colleges are eligible for this type of loan. Your financial aid office should know if the school is a qualifying school and if it is, what lenders offer the loan.

Lower interest rates are always a good thing because it means less cost to you in the long run. Not all private lenders are able to offer the Federal Family Education Loan so you might need to do your homework to find out which ones do offer them.

If you don't like the information the financial aid office gives you, you can look to the internet. The internet is a fantastic source for information about private student loans. It is important that you look at the different types of loans before you apply.

There are always a few scams out there and more often than not, there are plenty of companies wanting to earn as much money as possible on the loans they issue.

Another place to find a private student loan is with the financial institution you have worked with before. This can be especially helpful for people who have a short credit history. If you have banked with a particular institution for a while, they might be more likely to give you the best rates possible since you have an established relationship.

If you want to go to college, it is going to take sacrifice and money. You will have to do the sacrificing, but a private student loan might be able to help you take care of the money part.

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