Alternative Loans

Alternative Student Loans

Also called "private" student loans, these are loans made to students by private finance companies: sometimes banks, sometimes specialized education lenders.

Why Private Student Loans?

Private student loans combine the best elements of the different government loans into one:

1. They generally offer higher loan limits than direct-to-student federal loans, ensuring the student is not left with a budget gap.
2. Specialized private student loan rates are lower than non-specialized private loans (e.g. "signature" loans) but higher than government loan rates. Private loans generally offer a lower interest rate than can be obtained by going to a bank directly, and certainly lower than lines of credit such as a Home Equity Loan or a credit card.
3. Unlike to-the-parent government loans, they generally offer a grace period with no payments due until after graduation. This grace period ranges as high as 12 months after graduation, though most private lenders offer 6 months.
4. You can apply for private student loans online at CampusDoor.com.