11.17.09 | Private Student Loan Deferment
Before you apply for a private student loan to help fund your undergraduate education it is important to think about where you will be after graduation. If you see yourself taking on more education, and do not think you will be able to start paying your loans back, you might want to think twice before taking on a private student loan.
Unlike federal student loans, private student loan payments cannot be deferred while you are in grad school. Deferment is at the discretion of the lender and they are not required to extend any kind of help to borrowers who are either unemployed or in school.
While in school students often find themselves in need of funds quickly. Private student loans are great because you can use them for any education-related expense, however you should not sign off on them hastily to get money for books right away. Make sure you research and compare private student loan options. You should know when you will be expected to start paying the loan back, what the interest rate is, how much you will pay in the long run, and what the other terms of the loan are. You do not want to be kicking yourself and wishing you had made a different financial decision down the road.
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