by The value of education is undeniable – and so is the cost. If you’ve maxed out your federal student loans, you still may need additional help to pay for costs. Let’s see how to get the best private student loans to be ready for next semester.
Contents
Federal Loan Limits
Every situation is different, but the amount you can borrow from the federal government is not unlimited. For example, for dependent undergraduate students, the borrowing limit for the most affordable federal loans is currently $31,000. Depending on what school you attend and where, that amount might fall far short of your total expenses.
After maxing out on the most affordable federal loans, the next sources to look at are federal PLUS loans and loans from private lenders. However, PLUS loans have higher interest rates (currently 7%) and upfront fees of nearly 4.3%, which can make private loans competitive.
The Old Fashioned Way
In the old days, borrowers went from lender-to-lender looking for the best deal. The rates that attracted you at first might not have been prequalified. There’s nothing worse than getting excited about a teaser rate only for them to swap it out for higher interest. The process also took a lot of time. You had to fill out different forms for each lender and then wait anxiously for a reply. Maybe the worst part of going door-to-door is the possibility of getting turned down.
The Modern Way
These days, a web-based, multi-lender marketplace can make finding a private student loan much easier. First of all, you avoid having to inquire with many different lenders. Instead, you answer a few questions about yourself to see actual rates from multiple lenders — all at the same time via a single platform. These aren’t teaser rates or vague ranges. Instead they’re prequalified rates adapted to your personal situation.
Is It Fast?
With a lender marketplace, you can see rates in minutes. Plus, since you see rates from lenders you prequalify with, you can easily compare terms to get the best deal.
Make Sure You’re on the Right Site
Don’t get fooled by loan comparison sites that aren’t integrated with lenders. The rate tables they provide only show a range of rates that you might qualify for.
A true lender marketplace’s connections with lenders mean the rates they show are accurate and allow you to make smart borrowing decisions.
Summary
If you’re looking for a private lender loan to pay for next semester’s school costs, consider a lender marketplace to get prequalified quotes. The main advantages are:
- See real rates from any lenders you prequalify with
- Only one easy form to fill out — takes 2 minutes
- Almost any degree can be financed
- Repayment plans are flexible
- Checking rates doesn’t affect your credit score
- Your personal information isn’t share with lenders unless you see an option you like
Have an awesome semester!
