Personal Student Loans

Sometimes students find that federal grants, scholarships, or Stafford loans are not enough to cover the everyday expenses of a student. Let's face it, living as a college student isn't as cheap as it used to be! A Personal Student Loan, like all financial aid, is a type of loan offered to students to aid in educational and/or living costs.

A personal student loan requires that the student be actively enrolled in school at least part time, and to meet the credit criteria (or have a co-signer with a good credit history).

This type of student loan offers many benefits that your standard Stafford loan does not. For the most part, private student loans are much easier to obtain. The application process is simple, and not unlike applying for a credit card. A quick credit decision is available, which pales in comparison to the time it takes to fill out the many forms of the FAFSA process.

Interest rates may vary, however most are relatively low, and are usually based on the credit history and the prime rate at the time. The loan repayment terms may vary also, however usually the student is required to start paying on the loan only after he/she graduates from college. The student also has many options on how he/she would like to repay the loan amount, based on their financial position.

A personal student loan also features higher approval rates and loan limit amounts than its federal counterpart. Loan amounts can vary, but $50,000 to $100,000 are not uncommon. Graduate and health-related students can borrow even more, up to $200,000 respectively.