Private College Loan - Looking Back at its Definition

What else do you need to know about the private college loan? And do they really go hand and hand with federal or government loans?

Private student loan is the type of loan made available to you or other college students when a scholarship, debt or government or federal loan fall short of your school expenses such as a tuition fee, accommodations of even books and school supplies.

Always remember this: the key word is private. A private college loan is definitely not sponsored by the federal government. Therefore there are no federal or government papers that you would need to fill up, process and sign.

A private student loan is mainly offered through a commercial bank or other various financial agencies or institutions. Another characteristic of a private college loan is that your credit history is required by the lender in order to review it to determine if you are capable of repaying the private student loan. In most cases, the lender might need a co-signer which will serve as a guarantor.

The Sallie Mae loan program is in the business of offering appropriate private college loan programs for both undergraduates and graduate student alike. There are some more private college loan programs such as the MBA type of loans and Medloans.

Indeed, the private college loan is often correctly referred to as the alternative loan because it does compliment the federal loan that you already have.