Personal Loans

It's possible for you to fund your educational program solely with private loans, although most students use private loans as a supplement to other funds because they generally have higher interest rates. Private lenders can help you fund your bachelor's degree program through a variety of personalized student loan options.

The Federal government does not subsidize the interest on private loans while you are in school. With private loans, you can choose to pay interest and principle while you are in school at least half time or defer payment of both interest and principle until you leave school (generally with an added repayment fee).

Personal student loans usually come with interest rates comparable to your credit card interest rates and your eligibility for a personal loan is based on your credit report, which includes your personal credit history and employment record.

Co-Signers Help Secure Your Credit
If you have bad credit, you may be required to find a co-signer before you can borrow a private loan. Your parents, relatives, or family friends may serve as co-signers on your loan, but they should be aware that any repayment problems you encounter will be reflected on their credit as well as yours. Your co-signer will be notified of late payments or defaults and the bank may hold them liable for repayment of the loan. 

Your Interest Rate and Your Major
Your interest rate can be directly affected by your choice of major and academic record. The amount you can borrow, and your ability to get a loan, can also be affected by these crucial factors. Students in lucrative majors such as medicine, law, or business, sometimes receive the best rates and extras on their loans. Banks expect graduates with these majors to more quickly earn larger salaries than graduates in other fields, which permits them to repay a larger loan without going into default. 

Finding a Loan that Fits
Start your personal loan search by contacting the banks or credit unions where you and your family already do business. Lending institutions will sometimes 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. Research your personal loan options and find the best rate and repayment plan for you. Securing and repaying a personal loan may require more work than other sources of financial aid, but a personal loan can mean the difference between funding and not funding your online educational costs.