Compare Private Student Loans

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Compare Private Student Loans

The Student Loan Network offers a unique option to customers; choose from two different private student installment loan options.

The first, a standard “school certified” private college student installment loan has somewhat lower fees and rates.  The down side is that the school has to certify the installment loan (verify that you are a student and the cost of education less other help) which causes delays in processing and disbursement.  For school certified installment loans, the check is sent to the school.

Students pursuing a school certified loan must rely on the school they are attending to provide school certification. They take into account the course or program they are attending, the students registration status, the cost of attending the school and whether the student is eligible for other types of student loans. In terms of the program, students might be attending full time, part time, half time or even just a single course.  They may be eligible for other types of aid which must be taken into account, including family aid that may be available.

If any of this information is not correct for any reason or if the student is not yet registered, the student’s application can be delayed or held up until the information is clarified. Grade levels of the student are also included in the assessment.

The second option is a “direct to consumer” private student installment loan which comes with competitive rates – generally higher than certified installment loans – but will fund direct to the student in as little as five days from application completion. Private student certified loans are really similar to personal loan. They do not consider family aid that may or may not be available. Students must be able to pass a credit check and in some cases the loan providers may ask for a cosigner for the loan.

The financial aid office of the school is responsible for providing certification for both types of loans; however the private loan certification process is usually much quicker. There are maximum amounts available to each student based on the program they are participating in and also the level or grade they are in.

Students should plan their cash flow to ensure that they will have sufficient cash to pay all of their expenses while they are waiting for certification of their loan applications. The process can take time and may not be available as soon as the student needs money to pay for whatever expenses they have.

Also anyone cosigning for a loan should be aware that if the student is unable to pay for the loan, the cosigner becomes responsible for the loan repayment including the interest that has accrued. A cosigner should always consider this obligation very carefully since it will also impact your credit rating should the loan go into a default situation.

As with any loan, whether it is certified or not, borrowers should always read the fine print and understand how much interest will be charged, when it will be calculated and when the loan becomes due and payable. In some cases loans become immediately due if the student drops out of school before completing the program they are in. Students are forced to drop out for many reasons every year. What they may not realize is that their loans immediately become due and payable unless they are able to negotiate a new repayment package based on their income and employment status.

Most students are excited about going to school and about moving out of the family home. They tend to pay little attention to the details of their loans other than the amount they hope to receive and when the loan will arrive. With all of the potential impacts associated with loans it is time to pay attention, even if these loans will be school certified.