Private Student Loans - How Can You Qualify?

Private student loans are one of the many financing alternatives available for students who are looking for funding for college - and let's face it, who has the funds to pay for college without some outside assistance these days?

Student grants, scholarships, fellowships, and federal loans are also viable alternatives, but frequently, they will not cover the full cost of school or a student will not qualify for the full amount of the loan.

So, many students and their parents end up turning to private student loans to cover their remaining college tuition costs.

Let's talk about what it takes to qualify for such a loan.

Students hoping to apply for these loans must:

Be a U.S. citizen, or a qualifying non United States citizen (generally a permanent resident)
Be a high school graduate or possess a G.E.D. (General Education Development) certificate.
Attending an eligible, accredited school

Be creditworthy, or have a co-signer- usually a parent - that is creditworthy.
Be willing to consider variable rate loans, which are much more common with private loans than with those that are federally backed.

With federal loans, there is more forgiveness when it comes to creditworthiness, but private student lending institutions tend to be much stricter about who will qualify for their loans, and this is especially true ever since the current financial crisis hit, bringing with it wave after wave of loan defaults.

Therefore, it is especially important that students and their parents who may need to qualify for private student loans ensure that they are creditworthy. Clearing up bad credit can take years, so if at all possibly, a parent (or student, if it is the student who will be the sole signer of the loan) should be taking steps to do this well in advance. Making all payments on time, never missing a payment, and ensuring that they do not run up their credit cards too close to their limit, are all crucial steps to having a good credit score.

If the primary borrower does not have the best credit, they don't need to abandon the idea of qualifying for private loans. They can take immediate steps towards repairing their credit, which should bring their score up within a year or two, and in the meantime, they can use collateral if they have any - such as home equity.

Also, a high school student can take some steps towards establishing their own creditworthiness by getting a part time job during the school year and full time job during the summer, and getting a credit card in their own name - and paying it off on time every month. The credit card may need to be a "secured" credit card, but this still helps a student to build up a positive credit history so that by the time they are seeking financing for college, they are considered creditworthy.

Finding money for college can be a confusing process, but it doesn't have to be. Private loans, federal student loans, and federal grants are not that hard to get. Let http://www.financecollegenow.com guide you through the college finance jungle!

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