Private Student Loan Benefits
Private Loan Benefits:
- Borrow up to the true cost of your education
- Fast eSignature process
Private student loans help to cover expenses not met by federal financial aid. Private student loans come with a lot of great benefits and can offer a wide range of discounts. While the exact benefits each loan offers will vary by lender, the following are some of the most common benefits for private loan borrowers.
Benefits of Private Student Loans
Private student loans are flexible. You can choose from a variety of interest rate and repayment options for most loans. Some of these options include:
- Choice of repayment plan
- Options to postpone payments while in school, with potential to defer or forbear
- Available with either variable or fixed interest rates
Private student loans give you the versatility to pay for all school-related expenses like books, room and board, lab fees, transportation, and more. Plus, they are available year-round, so if unexpected expenses arise, it's not too late to apply!
Federal financial aid and federal student loans are based largely on demonstrated financial need (except for the PLUS loan), grade level, and student status. Private student loans are not need-based which means that any creditworthy borrower is eligible.
Borrower Rewards and Benefits
Many private student loan lenders offer benefits and discounts when repayment begins, or during the repayment term. Here are some examples of potential discounts:
- Interest rate reduction for setting up auto-debit during repayment
- Interest rate or principal reduction for graduating
- Cosigner release after making a certain number of on-time payments
These are just some examples of the types of benefits you can find on a private student loan. Not all loans provide all of these benefits, so make sure to compare your loan options!