- Private student loans provide quicker application processes. This is because students are not required to fill the Free Application for Federal Student Aid (FAFSA).
- Loans can be used to meet other educational needs apart from your tuition.
- Unlike scholarships which have specific amounts, you’re free to borrow as much as you need to cover study costs.
- Loans usually don’t have origination fees and they are disbursed immediately they are approved.
- It is necessary to note that private student loans have higher loan limits than federal student loans.
- Cosigners can be anyone with good credit and can be released from the loan after a period of on-time payments.
- International students can benefit from such loans if they fail to maintain satisfactory academic progress. It is also for those who have lost eligibility for federal aid.
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- Before being awarded a loan, your credit history would be considered as well as the kind of interest rate you’ll receive.
- Private student loans have varying interest rates which may be higher than federal loans.
- One major demerit of these loans is that they don’t offer income-driven repayment plans.
- Similarly, the loans do not qualify for teacher or public service loan forgiveness.
- Of great importance is the fact that these loans provide limited options for financial relief when the borrower experiences financial challenges.
- Deferments and forbearances are limited to one year in total duration on private student loans. This is compared to three years for federal loans for international students.
- Not all such loans offer death and disability discharges.
- In a similar vein, these loans offer fewer repayment plans than federal student loans.
- It is also important to note that these loans are less available to low-income students.
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