Private Student Loans to Supplement Federal Aid

Private student loans can often be used to supplement your federal student aid for your college or university education. Here are a few things to consider about using private student loans as a supplement to federal funding.

Private Student Loans

These types of loans are offered by private lenders and individuals that have money to lend. To qualify for this type of loan, you are going to have to meet certain credit requirements and have a minimum amount of income. Because of this, not everyone is going to be eligible to receive private student loans.

Interest

With this type of loan, you are going to notice that the interest rates are going to be higher than on federal student loans. In most cases, the interest will still be reasonable, but it is going to be higher than traditional student loans. Because of this, you should use these only to supplement your federal loans in most cases.

Payment Flexibility

Federal student loans are known for their payment flexibility. If you take out private student loans, you are not going to have the same flexibility in your payments. You most likely will not have an option to defer payments or use a forbearance if you get in financial trouble.


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