| Education loans are sought by people who don't have | | | | are higher than those for federal loans ranging |
| personal funds for their education. Private education | | | | between 8-10%. Maximum repayment period is 20 |
| loans, also known as alternate loans, are those that | | | | years and is based on the loan amount. Minimum |
| are taken when federal loans, grants, scholarships, | | | | monthly principle and interest payment for some of |
| and work-study programs are not sufficient. A | | | | these loans is $25. Repayment options are of many |
| private education loan would cover all education | | | | kinds. These include immediate payment of principle |
| expenses such as: tuition, room and board, uniforms, | | | | and interest, immediate repayment of interest, |
| transportation, fees, books and even a computer. | | | | deferment of principle, and deferment of both |
| Private education loans are not guaranteed by the | | | | interest as well as principle. These examples are |
| government unlike federal loans. These are generally | | | | contingent on the kind of loan taken. For graduate |
| offered by private trusts, philanthropic and non-profit | | | | professional loans, both principal and interest are |
| organizations. The loan amount can range between | | | | automatically deferred while the student is in school, |
| $1,500 and 30,000. Generally, the loan amount would | | | | and during the six months following graduation or |
| cover the entire cost of education, minus any federal | | | | from the time the student ceases to be enrolled in |
| grants or scholarships. All US citizens, nationals, or | | | | school at least half-time. Private education loans |
| permanent residents can apply for a loan. Students | | | | cannot be consolidated with federal education loans. |
| who are applying for their own loans should be US | | | | These days, there are many options of private |
| citizens, should have a good credit record and meet | | | | education loans. Even the application process has |
| certain conditions. Foreign students can apply with an | | | | become very fast and simple with web-based and |
| eligible US cosigner. The interest rates for these loans | | | | telephonic applications. |