If your young person is planning on attending college soon, it’s time to start thinking about where to start getting student loan financing. First, though, look into other ways to finance their education.
Where to start?
The best place to start is to fill out a FAFSA application at FAFSA.gov. This is a portal site that allows you to find all of the options for college aid through one application. It’s not really as simple as that, though. FAFSA is just a starting place. But, before you start filling out your application, you should do your due diligence and do your research first so that you will be able to make a more informed decision.
If you’ll notice as you scroll down the list, Sallie Mae Foundation took the top spot as the #1 student loan of 2019. Why is this? They stated that Sallie Mae offered multiple in-school payment options, free scholarship registration, and e-signing online (convenience) as some of the primary perks of their offers.
College Avenue took second place because of their multiple payment options and instant decision online, and they offer easy acceptance without a credit history for co-signer agreements.
Number three was Discover Student Loans, which because they offer the benefits of no application, origination, or late fees, as well as fast acceptance rates and 24/7 customer service assistance.
All of these student loans are private student loans, and they are available to prospective students and their families who wish to send their children to college without borrowing from Federal programs.
Private student loans are a great option because most people are typically accepted. However, there are a few things you’ll want to keep in mind with this type of loans.
- Sometimes requires payment begins while still in school
- Interest rates can change (variable)
- Credit checks required to determine eligibility
- Co-signers may be required
Some people still prefer private student loans over Federal loans for their student loan financing since it means you will be dealing with a private bank, rather than the Federal government.
Defaulting on a Federal loan is a criminal offense if you default without an agreement to pay it back. Of course, they should all be avoided by carefully planning how much you can reasonably afford to borrow and planning when you will have it paid off.