Previously, private student loans have never been encouraged by savvy financial advisors. Private loans are those taken out from a bank or other credit lender. These types of student loans have a reputation for having much higher interest rates than federal student loans. Because of the higher interest rates, most people who are taking out student loans are generally encouraged to exhaust the limits of their federal line of credit before subjecting themselves to any private lenders’ high interest rates. However, the market is changing and now private student loans are becoming much more appealing and advantageous options for a select group of students.
Private lenders have begun offering lower interest rates on student loans than the interest rates charged by the federal government on the condition that the borrowers qualify. Private lenders analyze borrowers’ credit scores before offering student loans with lower interest rates. For those younger students who have creditworthy parents who generate sufficient income, private lenders are now offering lower interest rates as an incentive for borrowers to borrower from their company rather than from the federal government. Additionally, older students who are seeking to enter graduate programs and who have established themselves as creditworthy may be offered lower interest rates on student loans by a private lender.
Taking out student loans is a huge financial decision that can have severe and lasting impacts on a borrower’s and his or her co-signers’ financial stability, freedom and credit scores. Because student loans are such a serious matter, Student Loan Law Group recommends that all borrowers seek the advice of an experienced attorney prior to entering into any legally binding contracts. Student Loan Law Group consists of attorneys who are well-versed in student loans and may direct borrowers to the best student loan deals. Student Loan Law Group also helps borrowers when they enter the repayment phase of their student loans by advising borrowers on loan consolidations as well as assisting borrowers in applying and recertifying for income-driven repayment programs. Borrowers who seek more information or who have questions regarding any aspect of their student loans are encouraged to contact Student Loan Law Group at 888-843-1706 today.