All About Private Student Loans
Obtaining private loans is a lot like applying for car loans or mortgages: It’s completely up to the lending institution to decide whether you (or your parents) are worth the risk. Lenders will look at an applicant’s total financial picture—from work history to credit rating to income—to determine not only whether to approve you, but what loan amount to approve you for and what interest rate to charge you.

Many times, parents apply for private loans in their names to assist children in undergraduate school. When students apply for their own loans, often their credit history is either not great or so new that they haven’t had time to demonstrate financial responsibility. It can help to have a co-signer with a proven record of financial stability.

Keep in mind that, unlike federal loans, there isn’t a pre-determined interest rate with private lenders. Again, it’s at their discretion. Also, they likely will require payments beginning fr