What drives banks to offer the best private student loans?
Personal college loans help students all over the world. The main reason why the private student loans exist is to lighten the burden of the increasing cost of higher education. Other initiatives, for example, grants, scholarships, and state loans have been implemented to help bridge the financial gap between what is provided and the actual cost of attending school.
As a student these initiatives, such as state financing your studies only go so far. The state fund is a good idea, but it is not enough to cover all of your financial needs while in school. It is good to know that you can apply for private loans from other lenders providing student loans. Lenders introduced private student loans to help students meet all the cost of attending school.
However before you make anything official, it’s pertinent to understand what solution you are looking for and who offers private student loans to remedy your financial state. After all lending institutions are mostly interested in making sure you are a sound business investment before you are approved for a loan.
What to look for in personal student loans
When you decide that a private loan is the way to go, there are several factors to consider when choosing between the various banks that give out student loans in the market. The most important ones being the duration of repayment and loan interest rates. The way to uphold a healthy and convenient level of debt is to choose a package that is flexible.
That involves keeping the rates as low as possible and the repayment period should be stretched out evenly over a reasonable time. The best way to approach the situation is to survey the rates that different banks are offering and decide on one that is most favorable. Besides narrowing down on where to get private student loans, also look for additional perks you can take advantage of.
Identify 6 of the best banks that give student loans at flexible interest rates
We work to review student loans due to the need for responsible loan application practices while in school; and responsible use and repayment practices. We aim to guide students If you are not sure where to begin, you can choose from our list of top 6 lenders where you get the best options for student loans and their rewards. They include;
- SunTrust – attracts no origination/ application fee and no fee for paying the loan before the agreed date. The interest rates are reduced once you set up automatic payments with the company. The loan can fund up to 100% of the school’s attendance costs. The repayment period starts after a 6 month grace period, deferred until after you graduate, 25%of the principal during the in-school period or 100% of the monthly installments for the entire duration of the loan.
- Citizens bank – the bank has no application fees and does not attract an extra cost for paying off the loan early. You also enjoy reduced private student loans rates if you already have an active account with them. Students are given a more flexible repayment period from five to fifteen years.
- PNC Student Loans– the institution manages the loans, but their finance comes from a more comprehensive network of creditors. The service has no origination fees, and you will not be fined for paying the whole amount early. PNC offers loans for as high as $150,000 calculated regarding your level of studies, with both variable and fixed interest rates.
- College Ave – there are no origination fees and no penalties for paying the loan earlier than the stipulated period. They also provide facilities for automatic payments. The loans amount offered ranges from $2000 to the total costs involved when in school and the repayment period is you to 15 years.
- Sallie Mae – requires no application fee and you can pay off the loan earlier without a fine. Also, you can enjoy the lowest interest college loans just by setting up automatic credit Covers a broader variety if school loans with up to 100% coverage. There are three types of payments to choose from; fixed, deferred or interest based.
- LendKey – provides loans that are funded by credit unions and local banks, and has no application fees. It has reduced interest rates after repaying 10% of the principal amount and with the possibility of additional reduction if you set up automatic payments. Also, the student can make partial sums of the loan, from as low as 25% to the whole amount during the grace period.
Because the best bank loans for students have different interest rates, which you are likely to get confused while hunting for the right fit to your financial problems. Therefore we have prepared the table below to show the various lenders alongside their fixed and variable interest rates.
Students have had the question of how to get private student loans easily, therefore for most of these lenders mentioned above the application processes are relatively simple and take up less than half an hour of your time to complete if you have all the information needed. The information that may be necessary when applying for your student loan is your legal documentation, school records, and any other personal information that is directly related to your learning.
You may also require a co-signer to get the best loans to get for college approved. A co-signer is a guarantor for your debt, and he or she must also meet specific criteria to be eligible. Co-signing a loan is a legally binding obligation that stipulates that the co-signer will make payments on behalf of the borrower in case he or she defaults.