Lies and Myths re Private Student Loans


Private college loans need the student-applicant to own a good credit report. Bad credit history or no history to speak of means no chance to get such loans.

This is definitely not true as there is what we call bad credit private student loans. Yes, a credit report of good standing is a major plus when getting private loans. But if you have negative credit or even none at all, you can always apply for a loan albeit you will have to share one with much higher interests. Likewise having a co-maker can always be a factor for the approval of your application. Simply put, there exist private student loans for bad credit.

It is impossible to pay back the loans especially if you are still enrolled in school.

False. You can pay your loans back, even after college. If you are in a difficult position to pay back you private loans, then you can opt to settle the interests for the meantime, and then deal with both the paying back of the principal plus interest after you are done with education.

There are set deadlines when applying for private student loans.

This statement is definitely false. With private loans, there are no deadlines for the filing of application. Private student loans are available any day of the year. Try applying one in any financial and loan center, and depending on the type of institution you go to, the money may be ready in as early as a few days.