Private College Loan: Faster Growth than Government Type

Private college loan (or private student loan) volume growth is shooting up faster than that of the government college loans. If this type of trend goes on, private college loan volume will be able to surpass the volume of government student loan within 10 years or so. Accordingly, it is imperative for college students to have and utilize tools that they may be able to use in comparing and analyzing various private college loans.

One very important advice that students should follow is that they should only obtain a private college loan or private student loan if they have been able to max out the government Stafford Loan. They also must first file the FAFSA or Free Application for Federal Student Aid. FAFSA may qualify these students for work-study, grants, loans and other sources of student aid. Undergraduate college students must also check the costs of the Federal PLUS Loan, because this loan is not that expensive compared to other loans.

The fees and other charges by lending can markedly rise up the cost of the private college loan. A private student loan with a low rate of interest but has exorbitant fees will in the end cost much higher than a loan with a higher rate of interest but no accompanying fees.