1 answer
Andre
Student
Pemberville, Ohio
1
Question
Updated
161 views
What is the best private student loans you can get? #Spring25
Will not qualify for federal student loans.
Login to comment
1 answer
Evin Nisan
Program/Operations Management
4
Answers
Forsyth, Missouri
Updated
Evin’s Answer
Hi Andre,
While I don't know what the "Best" private student loans are that you can get, let me offer you some things to consider while looking into financing your education.
#1 - Interest Rate! This will always be the #1 thing to consider. Understanding interest rate is the most important thing. Some questions to consider:
-How much is the interest rate? A high interest rate means more payments over time.
-Is it simple or compounding (for example, if I borrow $100 at 5% interest rate, my interest will be $5. If I am now at $105, is the 5% interest based on the initial $100 or now $105)?
-Is there any interest deferment during school? Do I start accruing/paying interest while I am in school, or does the interest start adding up after I graduate?
#2 - Loan Structure. How is the loan structured? Is it a 5 year repayment? 10 years? 25 years?
-It is also important to understand balloon payments - this is a situation where maybe you're paying $100 a month for your student loans, but after 10 years now suddenly you owe thousands/tens of thousands all at once
#3 Alternative Financing - Scholarships/Grants
-Double check on any scholarships or grants before taking out any loans. Student loans have been normalized in the US, but they can pose a heavy financial burden if we are not careful when we take them out.
-Double check on your federal student loans; why do you not qualify? Is there something you need to/could do to change that?
Hopefully this helps guide your decision to choose the best option for you!
While I don't know what the "Best" private student loans are that you can get, let me offer you some things to consider while looking into financing your education.
#1 - Interest Rate! This will always be the #1 thing to consider. Understanding interest rate is the most important thing. Some questions to consider:
-How much is the interest rate? A high interest rate means more payments over time.
-Is it simple or compounding (for example, if I borrow $100 at 5% interest rate, my interest will be $5. If I am now at $105, is the 5% interest based on the initial $100 or now $105)?
-Is there any interest deferment during school? Do I start accruing/paying interest while I am in school, or does the interest start adding up after I graduate?
#2 - Loan Structure. How is the loan structured? Is it a 5 year repayment? 10 years? 25 years?
-It is also important to understand balloon payments - this is a situation where maybe you're paying $100 a month for your student loans, but after 10 years now suddenly you owe thousands/tens of thousands all at once
#3 Alternative Financing - Scholarships/Grants
-Double check on any scholarships or grants before taking out any loans. Student loans have been normalized in the US, but they can pose a heavy financial burden if we are not careful when we take them out.
-Double check on your federal student loans; why do you not qualify? Is there something you need to/could do to change that?
Hopefully this helps guide your decision to choose the best option for you!