Private Student Loans Can Supplement Federal Aid, Help Borrowers
Written by: Vanessa McHooley
Private Student Loans Can Supplement Federal Aid, Help
Prospective college students have a variety of student loans
from which to choose, from federal student loans to private
loans. With the rising cost of a college education, student
loans can help ease the burden for those seeking a higher
education or for parents paying for education for K-12 children.
Oftentimes federal aid does not cover the entire cost of a
college education. However, students and/or parent borrowers can
supplement federal aid with private loans.
Private Student Loans
Private student loans are unsecured and credit-based. Students
can use private loans for tuition and fees, supplies, computers
and living expenses.
NextStudent, the Phoenix-based education funding company, offers
private loans for K-12 students, where the parent is the
borrower. Also available are private loans for undergraduates,
graduates and continuing education students. For these loans the
student is the borrower and must be at least 18 years old.
Benefits and Incentives of Private Student Loans
NextStudent private student loans offer a host of benefits that
do not necessarily apply to federal student loans. There are no
prepayment penalties; students can apply with a co-signer;
generous borrowing limits are available; there are no
application deadlines; students can cancel within 90 days of
disbursement, with no fees or interest; and fees charged to
students are minimal to cover defaults.
There are many incentives when taking out a NextStudent private
student loan. Since interest is tax-deductible and funds are
sent directly to the borrower, private student loans are an
easier way to help students pay for school. It also is
encouraging to know that with private loans no original
signature is needed and pre-approval is fast. Private student
loans also can be used for distance learning, international
students, study-abroad programs and past due balances at school.
Requirements for Private Student Loans
Prospective private student loan borrowers must meet certain
requirements. Students must attend a TERI approved school and
provide proof of income and enrollment. When applying with a
qualified co-signer, borrowers automatically are pre-approved,
which is based on credit score. When applying with a qualified
co-signer there is a higher approval rating, 60 percent of
borrowers receive the lowest possible origination fee, and most
students will receive the best pricing.
Private student loans through NextStudent offer prospective
borrowers a host of incentives and benefits. When federal
student aid is not enough, private student loans can help fill
the void and help prospective students receive a quality
About the author:
NextStudent believes that getting an education is the best
investment you can make, and it is dedicated to helping you
pursue your education dreams by making college funding as easy
as possible. Learn more about Private Student Loans at
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