Wells fargo consolidating private student loans
If you’ve exhausted all these options, it may be time to consider a student loan.
If you want to get a student loan, you generally can’t go down to your local bank and take out a loan to pay for college.
Both are considered unsecured loans – this means that they’re riskier for the banks than secured loans, which have an asset or collateral behind them. The only asset behind an unsecured student loan is your future earning potential: your brain, essentially.
For this reason, private student loans can have very high interest rates.
Over the past decade, college costs and fees have risen 3.5% faster than inflation each year on average.
This means that affording college is harder than ever.
At first glance, private student loans might appear to have lower interest rates than federal student loans – but those lowest advertised rates are only for loan applicants who have excellent credit scores.
The average college student won’t qualify for these rates or will be forced to sign with a cosigner.
Federal loans generally have lower, fixed interest rates and can give borrowers more options than private companies to repay the loans.
Your financial situation might make it necessary to borrow money to pay for college.
This is a common situation, but it’s important that you research all of your scholarship, grant and loan options before getting a private student loan.
We did research on the top private student lenders and came up with some criteria by which you can judge which private student loan is the best for you.
When we sat down to find the best student loans, we performed in-depth research on major student loan providers and looked for common information that we could compare.