Private loans are available to help you cover additional costs of education, but keep the following information in mind:
The following list of questions will help you know what to ask when shopping for a private loan:
What is the interest rate on your private loan? The interest rate will often vary based on your credit score.
Is the interest rate fixed or variable? How often does the interest rate change and what is the rate based on?
What is the APR (Annual Percentage Rate) on the loan? The APR provides you with the total cost of the loan and will help you compare each loan and the fees associated with the loan.
What fees do you charge? Often lenders will charge origination fees or repayment fees. In some cases, you may even be charged an application or credit processing fee.
Is there a penalty for pre-payment of the loan? There should never be pre-payment penalty.
What borrower payment incentives do you offer? Some lenders offer interest rate discounts for on-time payments or automatic payments of your student loan. Verify how incentives are earned and how the incentive is lost. Some lenders revoke incentives if you are one day late on a payment.
- Direct Loans
- Direct Graduate PLUS Loans
- Planning Calendars
- Financial Aid 101
- Deferment Information/forms
- Repayment Information
- College Planning
- College Success