First, consider any federal student loan options available to you. When it comes time to apply for a private student loan, do not assume that all private student loans are the same. Benefits can vary by lender, and some lenders offer more repayment flexibility than others. Unsure how to choose a student loan and lender? Here are some key factors to look for in a private student loan:
Repayment Options
The repayment option is the way in which you are required to repay your loan. The biggest decision when it comes to choosing a student loan repayment option is whether you want to make payments while you’re in school or postpone until you graduate. Making in-school payments helps reduce the overall cost of the loan as you start paying down interest sooner. Some lenders will give you more options than others. At College Ave, we offer four different repayment options on our undergraduate and graduate loans, so you can choose what works best for you.
Repayment Terms
The repayment term is the amount of time you will take to repay the loan. Paying the loan back sooner will result in a lower overall total cost, but it will also result in larger monthly payments. Picking a longer loan term will help you manage your monthly payment, but the loan will be more expensive overall. The terms offered by lenders vary, and many lenders assign you a term without giving you the choice. At College Ave, we allow you to choose the term that works best for you.
Interest Rates
There are two types of interest rates – fixed and variable – and most lenders offer both options. However, when it comes to the actual interest rates, don’t assume that all lender’s rates are the same. Some lenders can offer better pricing options. To see what your rates would be at College Ave before applying, check out our pre-qualification tool – it won’t affect your credit score.
At College Ave, we believe student loans should not be one-size-fits-all. Students and families need financing that’s tailored to their goals, their lifestyles, and their budgets – not those of their bank. You should consider what’s important to you and look for a lender that gives you the options you desire. We give you the choice so you can build a loan that meets your needs. You can use our student loan calculator to find your perfect fit before applying.
What Should I Consider When Choosing A Lender?
Choosing a private student loans lender can seem overwhelming but knowing what factors to consider can make the process easier. Low interest rates are important, but also be sure to look for lenders with flexible repayment options that can help you match your monthly loan payments to your budget. Also, be on the lookout for any application or origination fees as well.
All lenders are not created equal and it’s important to know what to expect from your lender. Check out lender’s customer reviews and verify their Better Business Bureau rating. Taking out a student loan is a big decision, and you’ll want to make sure that you choose the lender that’s right for you.
