With the constantly rising cost of college education many students find that, even with scholarships, grants and federal loans, they cannot cover the cost of college and need to turn to private low interest student loans to make up the shortfall.
Other students find that because, most government funding is issued on the basis of need, they are unable to qualify for sufficient funding to meet their needs.
While it is generally better and cheaper to seek federal funding in the first instant, many students find that dealing with the bureaucracy which accompanies any government scheme is something of a headache and applying for a private loan is much simpler.
It is also often possible to get a private loan at an excellent rate as this is a large market with hundreds of lenders falling over each other for your business.
There are however two significant hurdles which students need to jump.
The first is that of the credit check. Almost all private low interest student loans will require you to pass a credit check and this can be difficult if you are looking for private student loans options for bad or no credit. For many students this means finding somebody with a satisfactory credit rating to co-sign their application and to stand as guarantor.
The second is the requirement for immediate repayment. In most cases you will need to start repaying a private low interest student loan within a very short time after if it is issued. This often results in students borrowing more than they really need so that they can use some of the loan to make repayments and, while this is fine in the short-term, it can increase the overall cost of the loan considerably.
At the end of the day students will have to pick a route which best suits their needs and this may well include a private loan (or series of private loans). The secret however lies in doing your homework.
One important point to remember is that debt can mount surprisingly quickly and can rapidly spiral out of control. So, whatever else you do, don’t simply pick the easiest route, but choose the least expensive route and one on which you are going to able to meet your obligation for repayment. You can get fast and easy private student loans for bad credit but don’t be tempted to take on more than you can afford.
An excellent place to start your search is FinAid