best private student loan lenders for parents
best private student loan lenders for parents The following are some things to think about when you evaluate potential private parent student loan lenders:
The interest rate is a major contributor to the entire cost of a loan. A loan’s total cost will be reduced if its interest rate is lower. The best interest rates are often reserved for those with strong to exceptional credit. Choosing a shorter payback period might also offer you a better interest rate.
A private student loan’s repayment period might range anywhere from five to twenty years. Note, however, that not all lenders are willing to extend credit to a parent borrower. If you want to save money on interest, it’s preferable to pick the shortest term available.
There is no set standard for the maximum loan amount, and some lenders may allow you to borrow up to your child’s whole estimated college expenses, while others may have lower limits.
Private student loans may be subject to costs such as origination charges or prepayment penalties from some lenders. A higher overall interest rate may result from them. Keep in mind that there are no costs associated with applying for or receiving a loan from one of Credible’s partner lenders.
Numerous loan companies provide discount choices to their consumers. For instance, some lenders provide discounts to borrowers who already have an account with them, while others offer savings only to those who enroll in automated payments.
If you choose to cosign your child’s loan instead of taking out a parent loan in your own name, you will both be equally responsible for repaying the amount.
You may be able to get out of cosigning the loan in the future if the lender offers a cosigner release option. Make a certain number of on-time payments in a row (anything from 12 to 48, depending on the lender) in order to be considered.