Personal Loans

A number of private lenders offer a variety of ways to finance your education. Compare the rates and services offered by different lenders and find the best loan for your specific situation.

The interest rate on your personal loan and repayment plans are based on your student status, personal credit history, and employment record. If your credit is poor or nonexistent, you may be required to find a co-signer for your personal loan. 

Anyone with good credit can co-sign on your loan, but you should be aware that any problems you face while repaying your loan will also affect your co-signer. Your co-signer will be notified of late payments or defaults, and the bank may hold them liable for repayment of the loan. Be sure to set up a reasonable payment plan, and talk to your co-signer about how you'll deal with emergency financial situations, should they arise.

Private Loan Interest Rate 
Most private student loans are offered with interest rates that are comparable to your credit card's interest rates. Your choice of major and your academic record may affect your interest rate, the amount you can borrow, or your ability to get a loan. Students in lucrative majors, such as law, medicine, or business, sometimes receive the best rates on their loans because banks expect them to earn larger salaries more quickly than graduates in other fields. As a graduate or doctoral student, you may have a higher earning potential than students with a lesser degree, meaning you may be able to find a private lender that will offer you some extra benefits.

Start your personal loan search by contacting the banks and credit institutions where you and your family already do business. Many banks offer discounted personal student loans to the family members of mortgage customers or credit card holders. Because of market competition, many personal loans come with benefits such as online access, direct deposit, and interest-only payments. Researching a personal loan plan requires some patience, but a good personal loan can help you complete your financial aid plan.