As the cost to attend college keeps rising, so does the need for students to find ways to cover that cost. Savings, grants, and scholarships are often not enough to pay for college, leaving a student loan as one of the primary options to finance the education you want. As you consider student loans, It’s important to know that not all student loans are the same. Before you decide to jump in with student loans, you should consider all of your funding options including grants, scholarships and others.
Private student loans
Private loans, like the name implies, are provided by lenders like banks and credit unions, as opposed to federal student loans, which are funded by the federal government. While there are a lot of benefits to getting a federal student loan, there is a maximum limit of how much you can borrow. You should start by utilizing federal student loans if you can, but with the rising cost of college, federal loans may not be enough. Private student loans can help fill this gap.
Give me some credit
Federal loans don’t require a credit check, which means when you apply for one, you’ll get the same rate as every other student. When applying for a private student loan, your unique financial circumstances and credit history are taken into consideration, which can affect your approval odds and the interest rate offered if you are approved. While having to pass a credit check may seem like a disadvantage, private loans commonly give you the option of having a cosigner. With the right cosigner, it could make a big difference in the rates you’re able to receive and may make it easier for you to acquire a private loan with a good rate. After you graduate, you may have the option to refinance your loans using your improved and established credit, which could offer you the benefit of a lower rate.
Where should you begin? Student lending platforms like LendKey can help you find a private student loan to cover your cost of college.
What’s the difference?
The rates and terms you may be able to get can vary drastically from one lender to another. Taking the time to shop around now could save you thousands of dollars in the future.
Federal students loans always have fixed interest rates, meaning your interest rate will be the same for as long as you have the loan. With private student loans, you often have the option of choosing between fixed and variable rates.
There’s more to consider than just the interest rates. Will there be reliable customer service? Will the lender also be the one to service the loan? LendKey services the loans that are originated on its platform, and LendKey’s US-based loan specialists are consistently praised for their friendliness, reliability, and how quickly they are able to respond to questions.
The loan with benefits
If a private student loan fits your needs, LendKey connects community banks and credit unions to students like you. Because LendKey partners with community banks and credit unions, these institutions prosper when their customers prosper, so they want you to succeed. Lendkey also streamlines the lending experience, making it easy to keep up with your loan. You can complete the entire process online, including reviewing your loan, applying, and making payments.
LendKey can also simplify repaying your existing student loans with student loan refinancing once you have graduated. If you have multiple loans already in place, you can combine them into one brand new loan, making it more convenient to keep up with. The greatest benefit — one loan means one interest rate, which could save you thousands in interest over the life of the loan.
When you work with LendKey and one of their partner lenders, you have a strong team behind you, helping make your dreams come true.
LendKey was founded in 2009 immediately following the Great Recession. Through partnerships with banks and credit unions, LendKey has helped more than 92,000 borrowers and disbursed more than $2.9 billion in loans.
For more information visit http://www.lendkey.com.