Information on using private student loan for college expenses - The Bills.com Blog

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Information on using private student loan for college expenses

Question: If you take out a private student loan for college and intend to 'live off your student loan money', can the student loan cover bills such as a car payment and car insurance?

Answer: I am glad to report that the answer to your question is a Yes!

I can also offer you the advice to consolidate (and dramatically lower your monthly payment) any existing student loans. Ifyou want to compare rates and terms to consolidate your student loans, you can get matched with several pre-approved lenders, by applying here:
https://www.bills.com/studentloan/loan/

When most people think of student loans, they think of federally insured student loan programs, such as Stafford and Perkins loans. For many students, federally insured student loans do not provide enough money to cover the cost of tuition and books, not to mention the other expenses associated with a college education, such as food, housing, and other necessary living expenses. Luckily, there are additional loan resources available to students in need of supplemental funds to finance their college education. These loans programs, called ?private student loans,? since they are

not guaranteed by the federal government, can offer students significantly more money than their federally insured counterparts. Many private student loans allow students to borrow as much as $40,000 per year. Like federally insured loans, most private loans also defer repayment of the loan until you graduate from school, though unlike federal loans, private loans accumulate interest during the deferment period.

The cost of private student loans can vary greatly depending on your lender, so when shopping for a new loan, you should contact various lenders to discuss the loan terms available. You can compare various private student programs at www.finaid.org

Unlike federally insured loans, which do not consider your credit history, private lenders

will review your credit report, and you must meet the lender?s minimum credit guidelines to qualify for a loan. In addition, the interest rate the lender charges you will be based primarily on your credit score. So, if your credit is less than perfect, a private student loan could be an expensive way to fund your college education. If necessary, you could try to find a co-signor with good credit to help you obtain a lower interest rate.

I encourage you to visit the Bills.com Student Loan Information page at http://www.bills.com/student-loans/ where you can read about various loan programs available to students. I hope that the information I have provided helps your Find. Learn. Save.

Best,
Bill
www.bills.com

Also, make sure to get a free financial health check-up with Bills IQ!

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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!

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