Private Student Loans: A Parents Best Choice?

The common notion that buying a home is your largest expenditure a parent would ever purchase is not really true. College education if it is not the largest will come in very close next to your home purchase. Parents who want to secure private Student Loans will have the daunting task of obtaining student loans for their sons and daughters education. Avoid the big mistake of saving later or waiting until you are financially capable.

The key in planning for your childrens education is planning in advance. Your sons and daughters educational funding should be well planned. Always consider the source of funds on top of your personal savings. Always budget for every single expenses that you do to avoid over spending. When calculating for college cost and expenses, there is COA which is generally referred to as cost of attendance.

The COA consists of five significant items you need to understand in calculating college costs. These consist of; tuition fees, room and board, transportation, book supplies, and allowable personal expenses. Two times a year the federal government recalculates the COA for each college and then adjust to inflation. The government uses the COA figures to determine your childs particular financial need come Financial Aid time.

If you are a parent and cannot afford to fund your sons and daughters college there are many options available to you. Stafford Loans are low interest rate loans borrowed in the students own name. There is no credit report review. Co-signers are not required. The funds for Stafford Loans are provided by private lenders and are subsidized and guaranteed by the Federal government.

Federal Stafford Loans, is available to both undergraduate and graduate students, are one of the surpassingly affordable ways to pay for school. Private student loan is another way of getting a higher education. These loans come in unsecured and credit based loan which can be used for any education related expenses. Covered in this type of private student loans includes your tuition fees, books, room and board and even your new laptop computer.

Repayment for private student loan does not start until six months after you graduate. To some parents they may cosign to help increase the qualification chances and increase the loan amount. Some financial lending institutions offers can be obtained thru online applications. You can borrow between $1,000 to $40,000 per year. You can have the money sent to you in two days. No financial aid forms required and no school certifications are required. They also have flexible repayment terms.

Do not be desperate if you are a parent. There are many options for you to take. All you have to do is go online and inquire which the best that suits your predicament.

Private student loans can be easily obtained if you are serious about it. Just make sure to take care of your student loans and do not spend it somewhere else to avoid problems later on.

Shellaine Enfesta
http://www.articlesbase.com/loans-articles/private-student-loans-a-parents-best-choice-375475.html

This entry was posted on Tuesday, September 15th, 2009 at 7:11 pm and is filed under College Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

7 Responses to “Private Student Loans: A Parents Best Choice?”

D;Ecoy! Says:
September 15th, 2009 at 7:11 pm

COLLEGE!!! Help me PLEASE!
LISTEN: IF YOU’RE NOT GOING TO POST A SERIOUS REPLY, THEN CLICK BACK NOW.

okay…here’s the situation…I’ve filled out the FAFSA months ago, and I’ve also applied for scholarships- I got none.

I graduated with a 3.41 GPA, in May- and i applied for UNLV after i graduated. I was accepted, and soon they received my FAFSA to determine my aid eligibility.

I moved away from home (maryland), to live here in Las Vegas. I recently registered for classes, got a room assignment, got my first-semester bill, and recieved my aid-offer letter. I was offered the following three choices:

Work Study: $2,500
Federal Subsidized Loan: $1,050
Student (PLUS) Loan: $10,065

here’s the thing, though:

my tuition payment (due August 22) is $12,026.50

that means, that the best choice for me would be to accept the PLUS loan, but I can only do that if my parents cosign.

…but beacuse my parents have signed a housing contract (they just bought a lot, and are building a house), they can’t cosign for the PLUS loan, or any other loan- even a private one.

I asked my financial aid department about payment plans, and i was told that i could pay $2,450.30 at the first of every month, for the next five months…reducing my tuition payments into five payments.

…that’s not a problem, but i can’t make $2,045.30 in a month. I’ve been proactively looking for a job (an entry level, professional job.), however, it’s difficult for companies to take me seriously because of my age (i graduated at 17).

so i need help, suggestions…SOMETHING! my bill deadline is approaching quickly, and if I can’t pay it, then i can’t go to school. i don’t have a support system to help me, and i’m running out of ideas.

Thomas T Says:
September 16th, 2009 at 12:13 am

Ooh that sucks, this is probably something you should have figured out before going to college. Try the lottery, jk. Are there any other bank loans you could get. Why exactly can’t your parents co-sign, because of their debt? Could you get grandparents or somebody else to co-sign for a loan, or if you really had to, you could borrow money from well-off someone you know, make sure you eventually pay them back though, or they will definetly hate you. And get working on getting that job, from the sound of it, you’re going to need it
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Golf Gal Says:
September 16th, 2009 at 12:15 am

That’s a tough one. I am going to college right now and know how poorly set up the system is.

Your best bet is to some how find a way to get that loan. Use any and all connections you can– even if it is your great great aunt who you haven’t seen since you were 3 years old.

Second option would be to work your way through school. Take the min amount of credits (usually 12) or even go part time if you have to. It may be tempting to try and push yourself to work as much as possible with a full coarse load, but its not worth it if your grades suffer.

Also as a side note, living on campus can be a great experience but a costly one. If they make you pay all housing costs at once upfront then you may want to find cheep housing within biking distance from campus where you can pay monthly.
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elizabeth Says:
September 16th, 2009 at 12:17 am

Did you check if you got any federal grants (money that doesn’t need to be paid back), I believe its called a Pell grant, next did you check with the school to see if they have any private scholarships, that you could apply to through the school.

Next I would triple confirm with your folks if they can’t co-sign, do you have a family member or a good family friend, a pastor, that may be willing to co-sign. If you find someone like this, you can work the next year in building your credit and working hard so you can try and get your own personal loan next year.

You may also have to prepare yourself to make the tough decision and maybe delay UNLV this year, and attend community college, until you can get your fiances straighted out. I know its tough to hear but it may be your only choice, right now.

I will keep looking, but good luck.
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liagirltx Says:
September 16th, 2009 at 12:19 am

Goodness gracious, I feel ya man, I’m somewhat in the same situation, Bush done screwed us all over. All I can say is have you thought about doing a community college in the area? And in the meantime you can work like a slave to possibly go to UNLV in spring. I know this is the college you want to go to and you still can but I’d try UNLV later and get my pre-reqs out of the way for a cheaper price and take all major classes @ UNLV (trust me on this one, I got sick of community college and I just HAD to go to some big university and now I’m struggling) probably not what you wanted to hear but I’m just being realistic, scholarships are a joke and financial aid can’t even pay for room & board so good luck with that :)
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My life right now as we speak, can’t pay for jack!!!

bab Says:
September 16th, 2009 at 12:21 am

You would be nuts to borrow that kind of money for UNLV. Have you given any thought to how you are going to pay it back? Harvard might be worth those loans but even then….but UNLV is unlikely to produce the kid of job where you can pay back what you’ll owe.

I’d be running back to Maryland for a state school you can afford.
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Found-1 Says:
September 16th, 2009 at 12:23 am

It sounds like you are being charged out-of-state tuition. Most community colleges and state schools are a tenth of this cost. Find a school you can afford and attend there.

Community colleges can cost less than 1,200 a semster!! If you have to go back home to Maryland then do it. Don’t make the wrong decision here and have it effect the rest of your life wondering what could have been.
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