Private College Loan and Federal Aid: What's the Difference

A private college loan, also called a private student loan or an alternative education loan, differs in numerous ways from government or federal student loan program.

First of all, in private college loan, repayment of loan can wait until even after you have graduated from college.

A private student loan can be approved preliminarily within a few minutes and will only need as little as five working days for the money to be available; you basically will be able to receive your private college loan proceeds quicker.

The private student loan is actually approved based on your credit report or history. You will not be required to go through the trouble of the difficult FAFSA financial loan qualification processes. This means less work done and time consumed.

A private college loan is usually an unsecured student loan, which means no collateral is usually required. Most private student loans are also accepted in most colleges and universities, so you will not suffer the hassle of having to know which loan program you college accepts or belongs to.

Therefore, when your government financial loan is not able to meet your college needs, a private student loan that is appropriate to our specific needs is always available. Most of these private student loans offer competitive rates and flexible repayment. Indeed the private college loan is a great alternative loan to government loans.