Tag Archives: private student loans

Tips on Paying for College

What can students do today to help pay for their college tuition? Cedar Education Lending lists 5 tips current students should follow:

1) Start researching for financial aid sooner rather than later. The competition for aid increases when the economy is weak. However, it also helps to check in as the start of the school year gets closer as some schools have emergency funds available as the admissions office gets a better handle on the final attendance numbers as some students withdraw or choose other schools.

2) Take as many AP courses as possible and to excel on the AP exams. High scores on AP exams can save considerably on college tuition. Many colleges award course credits for them, which can significantly reduce your tuition.

3) Apply strategically to colleges. If you exceed the school’s admission criteria, you might be likely to get a better financial aid package than a decent student.

4) Be realistic about how much debt to take on, given the starting salaries for probable majors and career paths. While some students feel they just have to attend pricey, brand-name colleges, a report released by PayScale found that state schools with low tuition offered students the best return on investment, when projected salaries and loans were taken into account.

5) If you have to borrow, pursue federal loans first before taking on private student loans. Also, remember that a private student loan consolidation can help save a significant amount of money after graduation.

Trends in Private Student Loans

With so much talk about student loans, we thought it might be helpful to analyze some of the current trends in the student loan industry.
Almost 2.9 million students have private loans, according to recent data by The Institute for College Access and Success.  Private student loans make up only about 15% of the $1 trillion in outstanding student debt though.

Much of the outstanding private student loan debt was amassed before 2008 when credit standards were less stringent and lenders were more plentiful.

Private loans typically carry higher rates than Federal loans because students often don’t have a credit history.Private loans are also not guaranteed by the government.Much of the outstanding private student debt was amassed before 2008 when credit standards were less stringent and lenders targeted the education market often through direct marketing to students.

Private student loans to students peaked in the 2007-2008 school year at about $22 billion, according to the College Board. Private student loan lending dropped to about $6 billion in 2010-2011 as lending standards tightened, lenders exited the market and federal loan limits increased.


Paying for Education With Private Student Loans

In the world of postsecondary education, scholarships and federal financial aids are the scarcest resources. With the costs of education growing uncontrollably, these monetary respites are usually not enough for someone who comes from an average income household to pursue higher education.

Paying for CollegeIn the face of this dilemma, a glint of hope can be seen in private student loans. Compared to a federal student loan, the interest rates on a private student loan can be steeper. On the upside, where federal student loans only offer a limited borrowable amount, which usually falls short of the total academic expenses, private student loans offer higher loanable amounts which can augment the shortcoming of federal loans, federal aid or scholarship grants.

Compared to a federal loan, there are lesser requirements for a private student loan. To gain eligibility for federal aid, you have to prove that you are indeed of low socioeconomic standing. On the other hand, almost everyone with a good credit standing can avail themselves of private student loans.

Private student loans are also very flexible and versatile. As much as you want to anticipate all the possible expenses that you will incur over the course of a 2-year, 4-year or graduate school program, there are still some things that you cannot foresee. Since there are no deadlines for private student loans, you can apply for them as the need arises. There’s also great flexibility on how you use the money you borrowed. The cash can be used for books, transportation expenses, board and lodging and several other expenses.
Finally, once you are earning an income and have the means to pay your debt,private student loan consolidation options are available.It is common practice to borrow money from different creditors. Each has different deadlines and different terms. This makes keeping track of your debt difficult and oftentimes, payments are missed. Private student loan consolidations collapse these numerous debts into one loan which can bring down interest rates and extend payment terms.

When looking for private student loans and later on, private student loan consolidations, make sure that you explore all options. Look for lenders with good reputations. For example,Cedar Education Lending can give you very competitive deals on your student loans and loan consolidations.

Private Student Loans and Interest Payment Advantages


Back to school

With the cost of education rising faster than inflation, degree holder aspirants often resort to private student loans to pursue their goals. A private student loan is actually considered a good debt because it increase an individual’s earning capacity. Just like any other debt, it needs to be managed properly to prevent negative consequences.

One wise way of managing your student loans is by paying off the interest while you’re still in school. This amount will vary depending on how much money you borrowed. For example, a $10,000 private student loan will generate on average approximately $80 in interest per month. In order to avoid the accrual of this interest, you can arrange with your student loan provider for an interest-only payment scheme while you’re still studying. Unpaid interest accrues while the borrower is in school. Upon entering full repayment, all accrued and unpaid interest is capitalized (or added) to the principal balance once at the time repayment begins.

As more and more students avail of loans and become financially liable at a very young age, it is critical that financial literacy is inculcated in them. It is not uncommon for students to work while studying. Instead of using your money to shop or buy a car, why not direct them towards paying the monthly interest of your student loan debt? This will not only prevent you from getting buried in student loan debt, but also hone your skills in budgeting and wealth management which can have a long-term impact on how you will handle your finances in your lifetime.

You can also consult educational financing institutions, such as Cedar Education Lending on how to manage student loan debt effectively, before and after graduation. These companies offer repayment schemes such as private student loans consolidations. By combining several private student loans from a number of creditors, a private student loan consolidation plan can lower interest rates, extend payment terms and result in lower monthly payments.

Pay a small amount today, save thousands in the future, this is the guiding principle behind paying the interest of a private student loan while studying.

In For A Penny, In For A Pound With Private Student Loans

There are certain things in life that once you start on it, there’s no turning back. One of these is attending college financially backed by a private student loan. Not graduating after taking out an educational funding can wreak long-term havoc on a person’s finances.
First, students who enter college without finishing their degree are still required to pay off their debt. It is important to note that private student loan or any kind of college financing are usually not dismissible, even during bankruptcy. So technically, college drop outs need to pay for something that they did not exactly benefit from.
This financial quandary is amplified by the fact that non-degree holders earn significantly lower than those with a college diploma. Modern job roles, especially the high paying ones, include a Bachelor’s degree as one of the minimum qualifications. In terms of annual salary, college graduates earn an average of $52,200 versus the $30,400 of high school graduates. At this point, it’s really just simple math: the more you earn, the more money you can use to pay off debt.
Many experts set the point of no return at two years. If you are an incoming junior college student and have financed your freshman and sophomore years with a private student loan, you better make sure that you will march on graduation day.
Taking a private student loan to obtain a Bachelor’s degree is a good investment; just make sure that you’re in it until the end. It will boost your earning potential and a great foundation in building a financially stable life. Certain education lending experts, such as Cedar Educational Lending, can offer several options for private student loans.
When taking out a private student loan, be sure to know what repayment choices are available to you. For example, private student loan consolidation is an efficient and cost-effective way to write off your student loan debts. By combining all your student loan debts into one, private student loan consolidations can offer lower interest rates and extended payment terms. In this case, taking out a private student loan can jump start your way to becoming financially responsible.

An age-old mantra constantly reminds people that in life, quitters never win. This strongly resonates when it comes to finishing college, especially if you have a student loan to pay off.

Private Student Loans, Early Bird Gets the Worm

Early Bird

College scholarships and financial aid programs are scarce. Students who are eyeing to land one are in a tight race against each other. In as much as applying for a college grant is a competition based on merits, it’s also an assessment of promptness.
High school students who are really determined to get into college and obtain a Bachelor’s degree should start their hunt for scholarships one year before their intended entry into a university or college, whether it is the summer term, fall term or spring term. For those who really want to get ahead, experts recommend to begin scouting as early as their junior year. It is important to note that deadlines for federal aids, private scholarships, university-given grants and scholarships awarded by organizations vary. Given this, it is very important for aspiring college students to know all the scholarship options available to them in advance and carefully note their cutoff dates. Remember, preference is given to applications received before the deadline and anything that comes in beyond this date will likely be fed to the paper shredder.
Depending on the school or university that you are planning to enter, federal financial assistance and college scholarships may or may not suffice. In the event that the grant cannot cover the entire cost of your college education, one of the most viable solutions is to take out a private student loan. There are a number of private student loans in the market today with varying interest rates and repayment schemes. Students should be discerning enough to scrutinize these options. One way of ensuring that you are getting the best private funding for your college education is by tapping into lending experts such as Cedar Education Learning.
Through this expert advice, prospective college students are presented with the best private student loan possibilities. Additionally, these educational lending experts can also create an effective repayment strategy so student loan debts do not linger that long. An example of a repayment option that Cedar Education offers is private student loan consolidation. Basically, private student loan consolidations merge several private student loans to one. If done properly, private student loan consolidations can bring down interest rates and extend payment terms.

The Benefits of Having Private Student Loans

Student Loan Benefits

Tuition fees and other academic expenses can be a problem not only for parents but for students as well. With the currently dwindling economy, it is hard to determine if it is still possible to attain quality education for free. Thus, it is important to exhaust every possible avenue available in order to ensure that one will have the chance for a brighter future through good education.
One of the common lifeline’s of financially challenged families is student loans. Whether it is a federal or private student loan, students avail of these opportunities in order to continue their studies. Although federal student loans offer lower rates, they usually set a limit to the amount being borrowed, and most of the times, this amount is not sufficient in covering a student’s educational expenses.
Thus, a private student loan is a good alternative, it not a supplement to the federal student loan that students avail of. Although this type of loan mostly depends on one’s credit ratings, it is far more flexible as compared to a federal loan. So the question arises: what are the benefits of private student loans?
First, private student loans are not that strict when it comes to their requirements. Almost everyone can apply for a loan, and only minimum requirements like unofficial transcript of records or letter of acceptance from the school are needed in order for your loan to be processed. Second, private student loan companies offer better customer service assistance. They make sure that you are well-taken care of, and that they are able to answer your every concern. Lastly, with private student loans, you can easily consolidate your other private student loans into one manageable account, making it easier for you to pay off your past and existing loans.
When choosing for a private loan company, make sure that you check out all of your options by comparing their rates, their payment terms and their reputation when it comes to their services. Ask around, ask as many questions as you can when it comes to hidden fees, interest rates, and pre-cancellation penalties. It is best to know everything before applying for a loan.
Earning a degree may be hard, more so if you are financially challenged, but it is good to know that there are companies who are willing to lend a hand into ensuring that you get that degree.