How To Pay For College When Financial Aid Isn’t Enough
While many types of federal student loans exist, freshman college students and their families often find that even the maximum loan amounts are not enough to pay for their education. For example, the average cost of attendance at a four-year public school for the 2015-2016 academic year was $19,548 and at a four-year private school, it’s $43,921— yet the most money first-year college students can borrow under the subsidized Federal Stafford Loan program is only $5,500!
What can college students do when financial aid isn’t enough to cover tuition and supplies? Consider a private student loan through a local credit union.
What’s The Difference Between Federal And Private Loans?
In the education world, colleges often refer to loans made directly by banks or credit unions as “private” or “alternative” loans in order to distinguish them from federal loans. Private loans can be used alone or to supplement federal loans.
• Financial aid forms required
• Loan limits determined by grade level
• Schools must authorize the loan amount
• Funds are sent to the school
• Satisfactory Academic Progress required to receive additional loans
• Standard 10-year repayment term
• Restrictions on how loan may be used
• Financial aid forms not required
• Higher loan limits
• Faster application process
• Funds may be sent to borrower
• Longer repayment terms
• Repayment options
• Less restrictions on how loan may be used (as for a computer for college or transportation)
Applying For A Private Loan
Unlike most federal student loan options, you can apply for a private student loan at any time. At Palisades CU, we offer competitive student loan rates with many benefits including:
- Competitive interest rates
- Credit & Academic based underwriting
- Cosigner Release
- .25% interest rate reduction when you sign up for automatic payments
- No origination fee for all student borrowers
Not only can we help finance upcoming education expenses, we can also help consolidate existing student loans. Contact us today to learn more or apply online now for quick approval!
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