In this article, you will learn how to apply for private student loans and you will discover a few methods for getting private student loans. As a note of caution, the methods described are simply options; I cannot personally recommend all of them. I have simply laid out your options, which option you consider is up to you.

 Try to Get as Much Federal Aid as You Can Before You Apply

Do your research into how much federal aid you are able to get and how much you may be owed. Even if this is your second shot at college, do not be dissuaded from doing your research and finding out as much as you can.

Could You Consider Getting a Federal Loan?

Don’t simply opt for the private route before considering your other options. The US government has made a very big student debt bubble by making it too easy to get federal loans. We are now at a point where a great many students do not pay their loans back. Frankly, you may as well take advantage and get a cheap federal loan before the bubble bursts.

 Try to Get Grants and Scholarships if You Serious About Learning

Please do not take grants and scholarships if you are not going to give it 100%. People who really need them cannot get them because of the jerks who take them when they are only using college as a three-year holiday. Please do the ethical thing and only apply if you are going to give it all your effort from start to finish.

 Applying for Private Student Loans Is Similar to Applying for Most Types of Unsecured Loan

You need to expect the same sort of thing as if you were applying for a student loan, such as a credit check, a look at your current debt, a look at your current and future income.

Your Loan May Last Between Ten and Twenty Five Years

Be aware that private student loans are going to last a long time. If you think a private personal loan is great because it doesn’t last as long–then you may be in for a nasty surprise.

 Private Loans Will Not Be Forgiven or Rubbed Off

You can spend 20 years working minimum wage jobs and have your debts wiped clean if you take a federal loan, but that is not the case for private loans because private loans will follow you to the grave.

 Choose a Fixed or Variable Rate

You may pick a fixed rate and pay the same rate for years and years, or you may pick a variable rate. No matter which one you pick, you are still taking a gamble. If your starting rate is good, then consider a fixed rate.

 Present Your Down Payment if You Have One

Just like when buying a house, if you can provide a lump sum when you apply, then it shows you are willing to put your own money into the project, which often reassured the creditor about your intentions.

 Do Not Sign Up With a Company That Claims They Will Apply for You

They are all frauds. Send all the comments you like about how I am generalizing, but a company that claims to apply on your behalf is ripping you off. Applying for a private student loan is very easy, and there is nothing a third-party company can do to improve your chances.

 Try to Aim for Banks That Have Experience Giving Away Private Student Loans

In other words, look for companies and banks that are advertising their fantastic and rates. Check online and check your local bank branches. Ask your own bank what options they offer. Check out our list below for a head start.

 Consider a Few of These Lenders

Not every bank or lender is going to be happy to offer private student loans because they are a big risk for the lenders, and the easy availability of federal loans means there are few pleasant reasons why students may need a private loan. If you are having trouble finding a company willing to consider your private student loan, then you should try a few of these.

 CollegeAve

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  • The fixed rate is: 4.99% to 11.24%
  • The variable rate is: 2.20% to 9.29%
  • Student borrowers must have a credit score in the mid-600s
  • Student borrowers may use a co-signer with good credit
  • Student borrowers must have incomes of at least $35,000 per year
  • Undergraduate students and their parents may apply
  • Graduate students and their parents may apply
  • Students may defer payments during school
  • The company offers financial hardship forbearance

 iHelp

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  •  The variable rate is: 3.18% to 8.71%
  • Student borrowers must have had 3 years of good credit history.
  • Student borrowers must have had incomes of at least $18,000 for the past two years
  • Student borrowers must have debt-to-income ratios of 45% or below
  • Undergraduate students may apply
  • Graduate students may apply
  • Students may pay only interest during school or defer payments during school
  • The company offers financial hardship forbearance
  • After the loan enters repayment, students may make 24-months of interest-only payments

Discover

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  • The fixed rate is: 6.24% to 11.99%
  • The variable rate is: 3.49% to 10.49%
  • Student borrowers must have good credit
  • Student borrowers may use a co-signer with good credit
  • Undergraduate students may apply
  • Graduate students may apply
  • Students may defer payments during school
  • The company offers financial hardship forbearance
  • They do offer the option to reduce payments

CommonBond

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  • Their 10-year fixed rate is: 6.23%
  • Their 15-year fixed rate is: 6.72%
  • Only MBA students may apply
  • Students may defer payments during school
  • The company offers financial hardship forbearance

Citizens Bank

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  • The fixed rate is: 5.25% to 11.75%
  • The variable rate is: 2.52% to 9.52%
  • Student borrowers must have good credit
  • Borrowers may use a co-signer with good credit
  • Undergraduate students and their parents may apply
  • Graduate students and their parents may apply
  • Students may pay only interest during school or defer payments during school

Wells Fargo

Wells Fargo small logo

  •  The fixed rate is: 5.94% to 12.99%
  • The variable rate is: 3.39% to 10.63%
  • Student borrowers must have good credit
  • Borrowers may use a co-signer with good credit
  • Undergraduate students and their parents may apply
  • Graduate students and their parents may apply
  • Students may defer payments during school
  • The company offers financial hardship forbearance

 Sofi

Sofi student loan logo small

  • The fixed rate is: 4.25% to 7.75%
  • The variable rate is: 2.97% to 6.15%
  • Parents may borrow for undergraduate students
  • There are career development services that students may use

 Sallie Mae

Sallie Mae logo Small

  • The fixed rate is: 5.74% to 12.87%
  • The variable rate is: 2.50% to 11.89%
  • Student borrowers must have good credit
  • Borrowers may use a co-signer with good credit
  • Undergraduate students may apply
  • Graduate students may apply
  • Students may pay only interest during school or defer payments during school
  • There is the option to make 12-months of interest-only payments after the grace period
    The company offers financial hardship forbearance

 Rhode Island Student Loan Authority (RISLA)

RISLA logo

  •  The fixed rate is: 3.99% to 5.93%
  • Only Rhode Island students and residents attending eligible Rhode Island schools may apply
  • Undergraduate students and their parents may apply
  • Graduate students and their parents may apply
  • Students may defer payments during school
  • They have an Income-based repayment program

 Methods With a Higher Rate of Success

It goes without saying that getting private student loans is difficult. There are a few ways you may increase your chances of success, and here are a few of the most commonly successful.

Get a Wealthy Co-signer or Guarantor

The lending company will be far happier to lend you money and/or give you a good interest rate if there is added security from your end. If you cannot afford a big down payment, and if you do not have security, then having a co-signer with a good credit rating is helpful. Having a guarantor with either good credit or lots of assets may also help your chances dramatically.

 Apply as a Mature Students With a Great Credit Rating

You may apply for a student loan during a later stage in your life. If you have already spent many years building a fantastic credit rating and adding a few fixed assets to your portfolio, you may have a better chance of both getting a private student loan, and of getting one with a very good interest rate.

Apply as a Slightly Older Student With a Good Credit Rating and Down Payment

Do not assume that you have to apply for a student loan as a teenager. You may leave High School and start working. You may build up your credit rating and then return to the lending with and good credit rating, a good credit history and a few years of work experience to add to your CV.

 Make an Application and Secure the Loan Against Your Assets

Nobody says that private student loans have to be unsecured. Some younger students have assets that they may use to secure their loan. Alternatively, you may grow a little older, earn a few assets, and then secure your loan that way.

Let an Affluent Person Apply for You and Pay That Person Back

Get somebody else to take on your private student loans and then pay that person back. This is a very easy way of getting student loans, but it is tricky finding somebody trusting and dumb enough to get into thousands of dollars of debt for you.

 Methods With an Intermediate Rate of Success

The methods listed above will help ensure you get a private student loan in most cases, but the methods above are difficult and some rely on luck or the giving/charity/kindness of others. The methods below do not rely so heavily on such factors, but the trade off is that these methods are less likely to be successful.

 Simply Apply With Lots of Proof of Your Intellect and Hope for the Best

In other words, try your luck. Fill out all the forms and present the best possible case that you can. You may be shown the door, but there are some companies that are more sympathetic than others are. For example, the Rhode Island deal that is offered by RISLA is almost as good as the terms that federal loans offer.

 Apply for Money for Each Semester but Pay Each One Back Before You Do

This is actually a very plausible way of getting through college if you are prepared to work very hard. You pay for each semester one at a time. You take a loan, you work while you study, you repay the loan and then you do the same next semester. The biggest downside is that it may take you several years to earn a degree that should take three years. However, there are many online degrees that allow you to earn credits and set your own pace, so it may not take as long as it first appears.

 Go to a Very Low-Cost College and Use a Credit Company With High Interest Rates

Some credit companies will give away private student loans, but in return, they want big interest rates and inflexible repayment options. You may be able to get a loan, get through college, and then refinance your student loan at a later date. Just make sure that your loan is one that may be refinanced and not one where you have to pay the full amount of interest no matter how quickly you pay.

An example of broken logic about debt

 Conclusion – If You Are Willing To Work Hard, You Will Be Fine

I cannot advocate hard work enough. I was viciously poor until my mid to late twenties when I discovered how working hard led to great wealth. When I say work hard, I don’t just mean being the best road sweeper in town, I mean always using your head to think of ways to make money honestly, how to get more done, how to get a promotion, how to improve myself, and how to save, invest and learn.  Hard work isn’t all about aching muscles; it is just as much about always thinking. If you are willing to work hard to repay your private student loan, then screw all those that turn you down because your indomitable spirit and hard-work ethic will help you find a way.