Personal Loans

Lenders can help you find funding through a variety of personal student loan programs. When you use your credit properly, you can pay for college without being crushed under a mountain of debt.

Most personal student loans are offered at rates comparable to credit card interest rates. The amount you can borrow and the interest rate you receive are based on your personal credit history and your employment record. An underwriter for a loan makes this decision. If you don't have any entries on your credit report because you're just out of high school, the underwriter may look at other criteria like whether you held down an after-school job.

Some lenders may require you to obtain a co-borrower to guarantee the loan. A parent, relative, or family friend may be a co-signer on your loan. Be aware, however, that any problems you face while repaying your loan will also affect your co-signer. Not only will they be notified of late payments or defaults, the bank may hold them liable for repayment of the loan.

Your Major May Influence Your Interest Rate
Another criterion that can affect your interest rate, ability to get a loan, or the amount of your loan is your academic record or your choice of major. Students in lucrative majors, such as law, medicine, or business, often receive the best loan deals because banks expect them to earn larger salaries more quickly than graduates in other fields.

You may want to contact the banks where you and your family already do business. Many banks extend personal student loans at discounted rates to family members of mortgage customers or credit card holders. While personal student loans may be harder to find than other sources of student aid, a little searching can help you find the final piece of your college funding puzzle.