| Such loans can fill a funding "gap." Often such a "gap" | | | | facts in mind, students can better compare the |
| is created when a student is awarded a Stafford or | | | | various alternative student loans. |
| Perkins loan, and then realizes that the amount in the | | | | Students might also consider how quickly they can |
| loan does not fully cover all of the student's | | | | obtain the loan. The Act private loans are fast, and |
| expenses. | | | | they do no require the completion of a FAFSA. Still, |
| The Lenders of Alternative Student Loans | | | | students should take note of the fact that awarding |
| The lenders of alternative student loans have put | | | | of the Act private loans is based on the applicant's |
| their loan applications online. Those applications are for | | | | credit. |
| secured loans. The lenders thus seek some "security" | | | | Different lenders have different repayment options. |
| when providing a student with loan money. | | | | The student in need of a loan should study those |
| Students can easily download an application for one | | | | options. An ideal lender is willing to defer payment |
| of the alternative student loans. Once downloaded, | | | | until after the student has graduated. |
| the application can be filled out and sent to the | | | | Some lenders, such as Astrive, give student loan |
| prospective lender. One word of warning: Students | | | | recipients an opportunity to refinance any of their |
| should study the details on the alternative student | | | | alternative student loans. |
| loans before submitting any application. | | | | The Best Time to Go After Alternative Student |
| The lenders of the private, alternative student loans | | | | Loans |
| hope to profit from their ability and their willingness | | | | Unlike many student loans, the money for the |
| to loan money to college students. As a result, they | | | | alternative student loans is sent directly to the |
| often attach stiff fees to the loan. Those fees are | | | | student, not the institution that he or she is |
| sometimes paid at the time of the loan application. | | | | attending. Students are not encouraged to look at |
| In other instances, lenders have added those fees to | | | | alternative student loans as a "first choice," when |
| the interest rate for the student's loan. | | | | searching for a way to pay for a college education. |
| Comparing Different Alternative Student Loans | | | | Not infrequently, a student with a Stafford Loan will |
| Students who want to compare the offering of the | | | | "max out" on that loan while still in school. If he or |
| various lenders might feel like they are comparing | | | | she hopes to continue and finish his or her education, |
| "apples and oranges." Students might wonder how a | | | | then that student needs to look at the alternative |
| high fee and lower interest compares to a low fee | | | | student loans. |
| and a higher interest rate. | | | | The same student might also want to consider |
| Students should remember this: a 3% fee is equal to | | | | getting a PLUS loan. |
| a 1% rise in the interest rate. When keeping those | | | | |