Unlike most federal student loans (excludes PLUS loans), which are limited in size, private student loans may cover to the total Cost of Attendance (COA) minus any awarded financial aid.In some cases, borrowers may receive a lower interest rate through a private loan lender than what is currently offered through the federal Direct Loan program.To decide if this is the correct option for you, talk to your bank to determine what interest rate they will charge, and whether you qualify for a consolidation loan and then you can compare that to what you are currently paying. Edgar Radjabli, of Baltimore, graduated from dental school in 2010, he had eight different loans from six different lenders totaling about 5,000. For many dentists coming out of dental school, loan consolidation and refinancing may be options worthy of consideration as part of a repayment strategy. – These are the most often asked questions by people with significant student loan debt.Students may not have the life experience to real understand how credit operates and often do not consider a plan for repayment.
While it is important, take a step back and look at the big picture.
They should also continue to apply for scholarships, as this may help reduce the need for private loans in subsequent years.
Tamara is the Social Media Coordinator and a regular writer for e Student Loan.com, Scholarship Experts.com, and Campus As a mother of four, Tamara has first-hand experience with many areas of education, including special needs (autism), the International Baccalaureate program and post-secondary education.
Even those who may have put away some money through a 529 Plan or another college savings account may find that it’s simply not enough to cover all their expenses, even after they factor in federal financial aid and scholarships.
When this happens, students and parents may need to make some tough decisions.