Private Student Loans | Student Loan Consolidation Program | Federal Student Loans

Private Student Loans

Private student loans can cover school expenses

Private Student Loans Tip - You should be conservative and borrow wisely.

Students who attend part time, half time or full time can get private student loan from $1,500 to $40,000¹ per year for any education-related expense—including tuition, living expenses, a computer, transportation and even previous school fees.

Benefits:

There's no school certification required—you decide how much you need for education expenses.
Funds are sent directly to you, not to the school, usually within 2 business days of final loan processing.
There are no financial aid forms to complete.
You can defer all payments until after leaving college.
There are interest rate reductions and a cosigner release option available

Federal Student Loans and Private Student Loans. What's the Difference?

Among the differences between these two important student loan programs are:

Private student loans:

Don't require completing the Free Application for Federal Student Aid (FAFSA)
Allow funds to be sent directly to you, not your school
Can cover college related expenses including previous semester fees
Can help when federal student loans aren't enough to fund your entire higher education
Have interest rates and fees that are determined by the lender and often depend on your credit rating
May require the borrower to have a co-signer, if the student does not qualify alone
May let you defer payments until six months after graduation
May offer borrower benefits in the form of interest rate discounts and rebates

Federal student loans:

Usually have lower interest rates
Often include federally-subsidized interest
Provide options to postpone payments
May have a longer repayment term
Offer easier credit requirements
Generally require completion of FASFA
Usually require school certification
Can cover education related expenses
May offer borrower benefits in the form of interest rate discounts or rebates

After you've checked for free funding available to you, if you decide you'll need additional assistance paying for your education, it's time to look to federal student loans. These are long-term loans with low interest rates designed exclusively for those needing money to meet the costs associated with education.

Federal student loans are the largest source of student loans around. They have very attractive terms when compared to most other borrowing options - such as lower interest rates, federal subsidized interest possibilities, options to postpone payments, longer repayment terms, easier credit requirements, etc. You will need to complete the Free Application for Federal Student Aid (FAFSA) before you can apply for federal student loans.

You should always plan to look for federal student loan options before investigating private student loan sources, because these loans are sometimes more difficult to obtain and can often end up being very costly to you in the end. Private education loans are designed to supplement federal student loan programs and are available from schools, banks and education loan organizations. Private education loans are also known as alternative studnet loans and the terms often vary considerably based on the lender and borrower credit histories.

Remember: Any college loan has to be repaid - even if you don't finish school, are unhappy with the education you received or are unable to find a job, or you're making less money than you planned. So borrow wisely now, because the amount of money you borrow now will have long-term effects that can influence your lifestyle!

As you determine the best way to finance your college education, you should consider the full range of student financial aid options available. Private student loans, like the Chase Private Student Loan, can be used when federal student loans, grants and other forms of student financial aid are not sufficient to cover the full cost of higher education.

¹ $40,000 annual limit ($130,000 cumulative limit) for Undergraduate/Career Education and Graduate/Professional Education loans based on the cost of attendance at college and the borrower's credit ability ($30,000 annual limit for Continuing Education and K-12 loans).Subject to eligibility criteria and other terms and conditions.

Student Loan Consolidation | Federal Student Loans | Private Student Loans