There are two parts when we say “Private Educational Loans”, one is “Education” and another is “loans”. Inspired kids, always look up to their role-models and start to dream about their own identity and that’s when they start exploring the world of opportunities alongside cutting a niche in this intellectual world.
In today’s time it is necessary to have a butt-load of money in order to afford ‘premier education’. It can just be even said ‘education’ instead, taking ‘premier’ out of the question. There are actually too many financial hurdles which shatter the dreams into pieces leaving behind ‘numbness’. No doubt, parents/guardians do everything in their control to acquire a ‘Govt. Loan’ but then the no. of applicants for this is always too much that “Private Educational Loans” come as a ladder to next level.
At times when one qualifies for ‘Govt. Loan’, the amount differs from the tuition fee and other expenses. (These days the tuition fees is increasing at a rapid rate but Loan amounts are not) However, Private Educational Loans stretch as far as requirements are foreseen. And which is why they become a preferred choice.
These Private Loans are easy to acquire as there are several companies providing the same. It’s a systematic process for application to such loans and the candidates/parents are strongly advised to understand the process thoroughly to avoid any unseen circumstances later on. It’s as good as booking an air-ticket with a band of airlines available for the destination of choice. Prepare an itinerary with various companies providing these loans and especially go through these four vital things:
- Monthly Payment Terms
- Interest Rates
- No Repayment Penalties
Having done this, it is also crucial to investigate on the company’s credibility & reputation as a Private Loan Lender.
Unlike, Govt. Loans, Private Educational Loans will require a signing-authority/guarantor, just in case the person taking the loan is unable to pay back the loan, it will be on-to that guarantor to pay back the same. It’s also important to have a guarantor who has good credit-ratings of his/her own so as to generally avoid the rejection of the loan application.
There can be “School-Channel Loans” or “Direct-Loans”. As the name suggests, some schools have their own policy of Loaning or have an association with one of the Loan companies’ in-order to facilitate the large crowd at one place. And direct loans anyway are provided directly to the person with no-third party involvement except the guarantor.
There can be several trade-offs in between the loan options. For example, there can be a ‘home-equity loan’ or an ‘insurance-policy’ tagged along with the Private Educational Loan, so as to provide benefits in various formats of business.