Good evening,
I wanted to know if anyone has any recommendations for private student loans. I have exhausted the options for federal student loans and still need more to cover the costs.
Any information will be greatly appreciated.
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Hi there,
I’m sorry to hear about your student loans. You said that you’ve exhausted the federal student loan options, but have you reached out the lenders who service your private student loans?
Although private student loans aren’t in automatic forbearance like the federally held loans, plenty of lenders are at least matching the feds. Calling can only be to your advantage – you can’t be penalized for asking. If there are extenuating circumstances — lost job, illness, for example — you can ask for options. Specifically, ask about hardship assistance, which could include a rate reduction or forbearance.
Even if you can’t get much in the way of assistance, you’re better off reaching out to the lender and explaining your situation before you miss a payment, which could result in penalties and a hit to your credit score.
Hope this helps — and hang in there.
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Thank you very much for your response. I am also looking for additional loans because the federal loans are not enough to cover the increased costs of education, room and board
Ah, sorry, I was thinking about dealing with loans after college.
Before looking for a private loan on your own, have you approached your college’s financial aid office? I talked to a counselor who once told me that if students would just ask, the school would often work with them to help cover costs (or at least a payment plan).
Many colleges have received emergency aid due to the pandemic. Although much of the funds may be exhausted already, it doesn’t hurt to ask if there’s any available.
Reach out to the financial aid office and make an appointment (probably virtual for now) to talk to a financial aid adviser — NOT the student assistant who answers the phone. Go into the meeting prepared with where you’re coming up short for expenses. If it’s living expenses, there are many colleges that have an emergency fund to help students. That can include food — some campuses have food pantries or can at least direct you to the right place.
The adviser might even know of some additional grants, scholarship or federally back student loan money you might not have realized you were eligible for. And use the federal student loans first — they offer the most flexibility for repayment plans after you graduate.
All that is to say, I hope you use all the resources your college can offer you before you get a private student loan. It may take a little more digging, but chances are it won’t cost you as much as a private student loan’s interest.
If you still need the private student loan for expenses, the financial aid adviser can probably also suggest lenders to you. Make sure you understand the repayment plan and interest rate before you sign anything. You’re paying for the school, so use the resources (like the financial aid adviser) to your best advantage.
Hope that helps!
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Hi
i would never get a private student loan because I think they r a bunch of gangsters. But I would just suggest going into it with ur eyes open and advice on what kinds of tricks they pull.
…speaking from family experience
Sharon
