How do I know if my student loan is federal or private?
If you aren’t sure which kind of loan you have, there are a few ways to find out:
- View your account dashboard. Visit StudentAid.gov and sign into your Federal Student Aid account. The account dashboard will show you what federal loans, if any, you may have.
- Contact the Federal Student Aid Information Center. If you don’t have your login information or never created an account, you can contact the Federal Student Aid Information Center at 800-433-3243.
- View your credit report. Check your credit report for free at AnnualCreditReport.com. Your credit report will list all outstanding loans under your name and your loan servicers. Once you have that information, you can contact the loan servicer for details about the loans.
Federal loan programs include the William D. Ford Federal Direct Loan Program, the Federal Perkins Loan Program and the Federal Family Education Loan (FFEL) Program.
Can I get a student loan without a co-signer?
It’s possible to get a student loan without a co-signer, but the difficulty of doing so depends on your situation.
Nearly every type of federal student loan does not require (or allow) co-signers. Because you don’t need a high credit score to qualify for these types of loans, most students are eligible without a co-signer if they can meet a few basic requirements.
Private student loans, however, may be harder to get on your own. These types of loans require a high credit score of at least 670 to qualify for the lowest rates. If you can’t qualify individually, you may need to add a co-signer to your application. However, some lenders offer a co-signer release after you meet certain requirements, so look for that feature as you compare your options.
Some private lenders specialize in student loans without a co-signer; instead of reviewing your credit, they may consider things like your performance in school and field of study instead. While it may be easier to qualify for these loans, they typically come with higher interest rates.
How do you get a private student loan with bad credit?
It’s possible to get private student loans with bad credit, but you’ll pay more for the privilege.
Some lenders offer student loans specifically for borrowers with bad credit or no credit. These loans have more relaxed eligibility requirements, and some don’t require a credit check at all. Instead, lenders may review alternative factors such as your field of study, grade point average or estimated future earnings to determine your eligibility. However, these loans come with significantly higher interest rates than traditional private student loans.
If you have bad credit, consider federal student loans first. Most of these loan types don’t check your credit, and the interest rates are standardized. That means everyone who qualifies for a federal loan receives the same interest rate, regardless of their financial history.
If you don’t qualify for federal student loans or have maxed out the federal aid available to you, consider taking steps to improve your credit before applying for a private student loan. If that’s not an option, you might add a co-signer to your loan application, which can help you qualify for better interest rates.
How much money can I borrow through private student loans?
The maximum amount you can borrow varies by lender. Some lenders allow you to borrow up to 100% of the school-certified cost of attendance—which considers tuition, fees, textbooks and room and board—while others have caps of $50,000 per year.
How long does it take to get a private student loan?
The amount of time it takes to get a private student loan will vary by lender, but expect it to take one to three weeks to receive your funds. Along with processing your application, the private lender will likely reach out to your school to confirm your cost of attendance. The lender may send your loan funds directly to your financial aid office, which will apply them to tuition and fees before sending the remaining funds over to you.
Do private student loans allow deferment or forbearance?
Some private student loans allow you to defer your loan payments while you are attending school, but interest still accrues on these loans. Some lenders may offer deferment for a financial hardship or during military deployment. Forbearance also lets you suspend payments for a certain period of time.
Regardless of whether payments are suspended payments through deferment or forbearance, the unpaid interest gets added to your principal, causing your monthly payments to increase once repayment begins again.
How are interest rates determined for private student loans?
Private student loans usually offer variable and fixed interest rates that are based on the borrower’s creditworthiness. If you have good or excellent credit, then you’ll be eligible for a lower interest rate. But if you have poor or fair credit, prepare for an interest rate on the higher end of the range.
Variable rates rise and fall according to the index they follow. For example, the lender may use the prime rate as its benchmark.