Federal loan limits depend on whether you are still considered a dependent or if you are considered an independent student.
Limits also increase if you’re going to professional or graduate school.
We did research on the top private student lenders and came up with some criteria by which you can judge which private student loan is the best for you.
When we sat down to find the best student loans, we performed in-depth research on major student loan providers and looked for common information that we could compare.
Both are considered unsecured loans – this means that they’re riskier for the banks than secured loans, which have an asset or collateral behind them. The only asset behind an unsecured student loan is your future earning potential: your brain, essentially.
For this reason, private student loans can have very high interest rates.
Some of the lenders we reviewed do offer that – but you’re taking a risk because most forbearance programs are arbitrary, meaning the loan companies can decide whether or not to grant you the forbearance period.
You might need private student loans to fill the gap between federal loan funds and the actual costs of college attendance.
This is because federal loans have lower rates and offer better repayment terms than private student lenders.Also, many student loan rates are variable rates, which means that they can fluctuate based on changes in the market.Private lenders have no obligation to offer forbearance periods or to defer payments due to hardship.The first place you should look for help paying for school is scholarships and grants. If you’ve maximized those opportunities, see if your college offers a work-study program.Work-study jobs are government-subsidized and are available to students who demonstrate financial need.