With a change of seasons come cooler temperatures and falling leaves. The fall also marks the return to college for millions of college students across the country. And, with the 2023-2024 semester right around the corner, now is the best time to get your financing in order. While grants, scholarships and federal student loans can help offset much of the cost of a higher education, private student loans should also be considered.
Private student loans have multiple benefits that borrowers should understand as they embark on their upcoming school year, but there is one major advantage that most of the other financing types don’t come with.
Are you in need of a private student loan? You can easily explore your rates and terms here now.
One big private student loan benefit borrowers should know
Amid a range of benefits that private student loans come with, arguably, the best one is the borrowing limit that accompanies most. Or, to put it another way, the lack of a borrowing limit.
Federal student loan aid for undergraduates is capped at $57,500, while the limit moves to $138,500 for graduate students, according to the Department of Education. Grants and scholarships can help, too, but the most effective way to bridge the financing gap is to turn to private student loans.
Many private student loans don’t come with those same financial limitations. “You can borrow up to 100% of your school’s cost of attendance,” student loan provider College Avenue notes on their website.
Private student loan provider The Ascent has a similar approach. They will cover 100% of students cost of attendance and other school-related expenses up to $200,000 for eligible applicants — that’s $61,500 more than what graduate students can get with federal loans.
Granted, each private student loan servicer is different, and the limitations will vary significantly. But if you’re looking for a smart and effective way to help make ends meet with your student loan needs, a private student loan, with it’s more flexible borrowing limits, can be key.
Explore your private student loan options here now.
Other private student loan benefits to know
Greater borrowing limits are just one of the benefits of private student loans. Here are two other major ones borrowers should know:
Quicker approval times
While your specific approval will vary based on your lender, private student loans are generally approved in a more timely manner than federal ones. Federal student loans, via the Free Application for Federal Student Aid (FAFSA), may take a few business days to get signed off. But private loans can potentially be approved within hours, if not minutes, depending on the lender and the applicant in question. This can be particularly helpful for those borrowers who have waited until the last minute to get their fall financing in order.
Better rates for qualified borrowers
With a federal student loan, the rate you get is what you get. You won’t be able to secure a lower one with a better credit score. However, qualified borrowers with high scores and clean credit histories can generally secure a competitive private student loan interest rate, saving you money over the term of the loan.
The bottom line
Both federal and private student loans have advantages that borrowers can use. Perhaps the biggest one private student loans have is the better — and greater — borrowing limitations. This can help borrowers completely finance their education without concern, letting them instead focus on their studies for the upcoming school year. Learn more here now!