03.02.10 | How are private student loan interest rates determined?
Unlike federal student loans, private student loans do not have a universal fixed interest rate.Private student loan interest rated are calculated based on a published index, such as the Prime Rate or LIBOR, and a margin based on your credit score and credit history. Private student loan interest rates fluctuate over time and interest begins accruing as soon as the loan is disbursed.
Prospective borrowers usually want to know what their interest rate will be before they apply for a loan, however an exact interest rate cannot be determined until you apply for a private student loan. If you are thinking about applying for a private student loan you should check your credit report first. If you have a lot of late payments, overdrawn accounts, and other credit issues your interest rate will be higher or you might not be approved for a loan at all.
If you have not built up a credit history, or if you have poor credit, you can apply for a private student loan with a cosigner. Applying for a private student loan with a cosigner not only improves you chanced of being approved, but it can also get you a lower interest rate.
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POSSIBLE PAYMENTS MAY HAVE TO BE TAKEN INTO CONSIDERATION
March 30th, 2010 | #
Can I recieve a loan even if I have no credit history, or does that mean I need a co-signer for the loan?
March 24th, 2010 | #
Thanks for the information. It answered alot of my questions.
March 23rd, 2010 | #
There is actually. Check out the blog I wrote on cosigner release — I think it's exactly what you're looking for.
http://blog.studentloannetwork.com/private-studen...
Thanks
March 16th, 2010 | #
my parents are interested in a loan that they can co-sign NOW, but are able to transfer the loan back for me to be responsible LATER… any info on that??
March 16th, 2010 | #
So the best kind of loan is to get a private loan?
March 12th, 2010 | #
My parents plan to pay for my school, but I plan to apply for a loan so they will not stress out.
March 11th, 2010 | #
Really good information!
March 9th, 2010 | #
i'm going to need to get a loan even though i don't want to, this is all good information to know.
March 5th, 2010 | #
This is great basic information for the novice borrrower.
March 5th, 2010 | #
My parents will help out, however, I will have to apply for a loan.
March 4th, 2010 | #
I am an International student studying In florida. What is the process for me?
March 4th, 2010 | #
thanks for the information.
March 3rd, 2010 | #
I need to get a HUGE loan:/
March 3rd, 2010 | #
Thank you for all the information, however I am trying my best to avoid loans so when I am finished with school and have a career, I will beable to enjoy that money an not owe it back over time.
March 3rd, 2010 | #
I hope I don't need I loan, but it looks like I might have to. Thanks for the great information.
March 3rd, 2010 | #
i plan to get a loan but i am still a little undesided thanks for the info
March 2nd, 2010 | #