Private Student Loans – How Can You Qualify?

Private student loans are one of the many financing alternatives available for students who are looking for funding for college – and let’s face it, who has the funds to pay for college without some outside assistance these days?

Student grants, scholarships, fellowships, and federal loans are also viable alternatives, but frequently, they will not cover the full cost of school or a student will not qualify for the full amount of the loan. You can also apply for civil service loans through various online sources.

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So, many students and their parents end up turning to private student loans to cover their remaining college tuition costs. Be willing to consider variable rate loans, which are much more common with private loans than with those that are federally backed.

With federal loans, there is more forgiveness when it comes to creditworthiness, but private student lending institutions tend to be much stricter about who will qualify for their loans, and this is especially true ever since the current financial crisis hit, bringing with it wave after wave of loan defaults.

Therefore, it is especially important that students and their parents who may need to qualify for private student loans ensure that they are creditworthy. Clearing up bad credit can take years, so if at all possibly, a parent (or student, if it is the student who will be the sole signer of the loan) should be taking steps to do this well in advance.

Making all payments on time, never missing a payment, and ensuring that they do not run up their credit cards too close to their limit, are all crucial steps to having a good credit score.