What about my personal loans?
Personal loans, also known as Signature or Private loans are marketed under various different brands but mean one thing; they are not administered under the Higher Education Act or by the Dept. of Education. These loans are issued by private lenders to cover expenses over and above what was allocated by your FAFSA. They do not carry any of the benefits of a federal loan* including: Interest rate subsidies, Guarantees from default, Grace, Deferment or Forbearance Options and Consolidation with other federal loans
As these loans are based on the credit of a borrower, sometimes a co signer is needed and some students may carry a higher or variable rate.
Getting a Personal Loan
The personal loan process requires different forms and a check of your credit. If you are interested in finding out your options regarding a new personal loan or consolidating your personal loan, contact a Student Aid Advisor directly. They will walk you through the online process. Call (800) 964-0642
Consolidating Personal Loans
Although some lenders will offer you the option of combining your federal and personal loans into one loan, we strictly advise against it. Any advantages are lost as your previously federally backed loans now lose their benefits. Overall graduates will save more by consolidating private and federal loans separately. To see how this works for you and to receive a Free Analysis, call our student aid advisors directly: (800) 964-0642
*Benefits for personal loans are determined by the lender. Please refer to their information directly for rates, benefits and terms. |
