Calculating your remaining college financial needs:
When considering a private lender student loan, the first step is to determine the total amount of your unmet need. It is important to calculate as nearly as possible the amount of money needed to cover any outstanding college costs. Rule number one concerning private, or alternative, student loans is to never borrow more than is absolutely necessary.
When calculating the total cost of college attendance, remember that you must consider not only tuition fees, but all additional costs such as books, housing, lab fees and any other education-related expenses. From this total, students will need to subtract the total amount of their college fund, including personal savings, scholarships, grants and any federal and state loans for which they have qualified. What remains is your unmet need, and this is the amount you will use when considering any private loans. The precise calculation of your unmet need will help you avoid taking on more in student loans than is absolutely necessary, so it is important to give this step due time and attention.
Most banks and private lenders offer their own college cost calculators, and these can be accessed on the lender’s website. Tuition calculators and student loan calculators are helpful tools to assist students, and their families, in determining the remaining funds necessary to cover the actual costs of college attendance.
Choosing a Private Loan Lender
When college-bound students have exhausted all other forms of financial aid, it may be necessary to consider a private student loan. Most national banks and private lending institutions offer their own types of education loans. Each lender sets their own terms and conditions, and no two private student loans will be exactly alike. Different lending institutions will offer different interest rates, loan limits, processing fees and repayment requirements. Students should understand all aspects of the loan being considered before signing any agreement.
Private student loans are available from most national banks, as well as from private lending companies. Some of the more notable lending institutions offering student loans include:
