| Most of the time we equate student loans only with | | | | is 27 months. This means that the borrower must |
| Federal student loan programs. These are based more | | | | have at least a 27 month history of good credit, with |
| on the basis of need rather than credit history and are | | | | no late fees or defaulted payments. |
| not always an option for all students. | | | | Most of the private student loans require a co-signer, |
| The best private student loans for college are those | | | | unless the student is in graduate school. The primary |
| that offer the lowest interest rates or have a partial | | | | reason for this is, simply, that a typical college student |
| forgiveness clause. For example, some private student | | | | is one who has just graduated from high school and |
| loans offer up to a certain dollar amount reduction, | | | | therefore will not have had time to build up a credit |
| contingent upon graduation. This is typically around | | | | rating of any sort due to the requirements of age. No |
| $300 and applies to principal reduction, not interest. | | | | one can enter into a contract unless they are a |
| Quite simply, the best private student loans offer the | | | | minimum of 18 years of age, and in some states that |
| lowest possible interest rates and some sort of | | | | requirement is as high as 21 years of age. |
| deferment. You can choose (depending upon the | | | | This means that a co-signer will be necessary, even |
| lender) to have payments deferred until after | | | | with the best private college loans. A co-signer is |
| graduation, or to make interest-only payments during | | | | someone who, along with the primary borrower, |
| the time you are enrolled in an educational institution. | | | | agrees to sign for a loan, accepting the responsibility |
| Others offer a grace period of up to six months after | | | | for payment of the loan should the primary borrower |
| graduation, during which time no payments are due at | | | | default. |
| all. | | | | As with any financial arrangement, you should shop |
| As to the lowest interest rate, that will of course vary | | | | around for the best private student loans. Keep in mind |
| from lender to lender and will depend upon several | | | | that these are intended strictly for educational |
| factors. The best private student loans are offered by | | | | purposes, but can be flexible enough to include books |
| lenders who look at good credit ratings, and the | | | | and supplies necessary for attending college. |
| minimum period of time that most lenders will consider | | | | |