Federal student loans are perhaps the one type of loan that most students think of first at the time of applying for a student loan and rightly so because such loans are readily available and attract lower rate of interest as well. In fact, federal loans address simple student needs and are not as dependent on the applicant’s credit history as is the case when applying for a private student loan. It will however pay to understand what the best private student loan is and how one can obtain one.
The Best Private Student Loan – Lowest Rate Of Interest
It stands to reason that the best private student loan is one that comes with lowest rate of interest or which also has clause that includes features such as partial forgiveness. Other than that, the best private student loan is sure to also be one that allows for certain amount of reduction depending on the student being able to successfully graduate from the course for which they have sought a private student loan. Typically, such reduction amounts to about three hundred dollars and is applicable to the principle amount rather than to interest.
There no doubts the fact that the best private student loan is one that offers lowest rate of interest and which also comes with ability to defer payment of the loan. Depending on the private student lender it is possible for applicants to choose the deferred payment option and start paying only upon graduation or they can choose to pay the interest only during your study years and then start paying off the loan amount once they have graduated from their college.
Another way of selecting the best private student loan is to look at the grace period offered by the lender which should be six months after the time that you graduate from your course. The rate of interest charged depends on the private student loan lender as too on a number of other factors. If your credit score is good you stand a better chance of getting lowest interest rates and if you also have a cosigner your chances of getting the best private student loan will improve dramatically.
In regard to private student loan refinance there are several factors that need to be considered in order to get things right. Private student loan consolidation is a good option and so you will need to ask your bank for this facility or you can check out various government programs to consolidate your private student loan.