Private College Loan and Interest Rates

Did you know that many private college loan programs or also known as private student loan are connected to at least one financial index such as the Wall Street Journal rate? And also, since because a private college loan or private student loan is dependent on the kind of credit report an applicant has, the overhead charge of the program is not fixed.

If you are going to apply for a private student loan possessing an outstanding credit report, then there is a great chance that you will get lower rates and lesser amount in the origination fees. On the other hand, those with not-so-good credit report will have to do with higher rates.

Private college loan: Better than government loan?

Private student loan is a loan that is not guaranteed by a federal agency, and is actually provided to students through commercial banks and financial groups and companies. They say that private college loan is better than the federal loans because such private loans have a grace period without any due payments. All such payments are only due after the student’s graduation. Most lenders of private loans offer grace period of about six months, but there are a few with a grace period of one year.