There are no origination fees or prepayment penalties associated with the loan. Lender may assess a late fee if any part of a payment is not received within 15 days of the payment due date. Any late fee assessed shall not exceed 5% of the late payment or $28, whichever is less. A borrower may be charged $20 for any payment (including a check or an electronic payment) that is returned unpaid due to non-sufficient funds (NSF) or a closed account.
Then the Ensuring Continued Access to Student Loans Act of 2008 increased the annual and aggregate loan limits on the federal Stafford loan starting July 1, 2008. This shifted significant loan volume from private student loan programs to federal. Private student loan volume dropped in half in 2008-09, according to the College Board's Trends in Student Aid 2009.

The other thing to consider with repayment is what your repayment term will be after you leave school. Most often, lenders will offer multiple term lengths ranging from 5 to 15 years, though some do offer longer terms. The longer your term, the lower your monthly payment will be, but the more your loan will cost over time, and vice-versa for shorter terms.
You can compare private student loan options on our site. Keep in mind there are a number of popular private student loan names you may see and hear, and it is bound to be confusing. Sometimes the names will be generic, and other times the name will refer to a specific lender’s program or brand name. The name of the student loan program is not as critical as an understanding of how the particular loan terms work, or how they may impact you. To give you a quick primer on some of the most popular private student loan names you may encounter, see the list below.
This page provides a basic comparison chart that highlights the key characteristics of the major private education loans. FinAid also provides a separate list of private consolidation loans. In addition to the private student loan programs, there are several websites like Credible and other student loan comparison sites that provide tools for comparing private student loans which help identify the loans that match your criteria.
Each federal student loan borrower is assigned to a loan servicer (some borrowers may have more than one servicer, depending on the types of loans you have). Your loan servicer is a company that collects your student loan payments and provides customer service on behalf of the U.S. Department of Education. This is a FREE service. There are many companies out there who offer to help you with your student loans for a fee. Do not trust these companies. Remember: You never have to pay for help with your student loans. If you need advice, assistance, or help applying for one of our repayment programs, contact your loan servicer. They can help you for free. Just remember to keep your contact information up to date so they can reach you when they need to.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.

The stark reality is most American students and families have to borrow money as part of the overall financing process to pay for a college education. In fact, according to the 13th Annual Project on Student Debt, “Student Debt and the Class of 2017,” published by The Institute for College Access & Success (TICAS) in 2018, average student loan debt among college seniors is $28,650. Moreover, approximately 15% of the debt acquired among the Class of 2017 was non-federal debt.
Overview: This online-only lender, which was founded by former Sallie Mae executives, distinguishes itself with increased flexibility. Borrowers can expect greater in-school and post-school repayment options than what’s found elsewhere. Also, students and parents alike will appreciate perks, such as no fees and low rates, in spite of a slow path to cosigner release.
Private loans are typically made through private banks, credit unions, state agencies, or financial institutions. They may have rates and terms that are different from federal loans. If you’re considering applying for a private loan, be sure that you’ve taken advantage of all federal aid opportunities first. There are two types of private education loans:
Interest rates and APRs (Annual Percentage Rates) depend upon (1) the student’s and cosigner’s (if applicable) credit histories, (2) the repayment option and repayment term selected, (3) the requested loan amount and (4) other information provided on the online loan application. If approved, applicants will be notified of the rate applicable to your loan. Rates and terms are effective for applications received after on or after 12/01/2019. The variable interest rate for each calendar month is calculated by adding the current index (One-month LIBOR index) to your margin. LIBOR stands for London Interbank Offered Rate. The One-month LIBOR is published in the "Money Rates" section of the Wall Street Journal (Eastern Edition). The One-month LIBOR index is captured on the 25th day of the immediately preceding calendar month (or if the 25th is not a business day, the next business day thereafter), and is rounded up to the nearest 1/8th of one percent. The current One-month LIBOR index is 1.750% on 12/01/2019. The variable interest rate will increase or decrease if the One-month LIBOR index changes or if a new index is chosen. The applicable index or margin for variable rate loans may change over time and result in a different APR than shown. The fixed rate assigned to a loan will never change except as required by law or if you request and qualify for the auto pay discount. APR Assumptions: APRs assume a $10,000 loan with two-disbursements The low APRs assume a 7-year term and no deferment. For loan details, repayment examples and additional disclosure statements visit: https://www.suntrust.com/loans/student-loans/private/custom-choice-loan?referrer_link=NERDWALLET
Many people who are overwhelmed by student loan debt hope that bankruptcy may offer a solution to their problem. However, if you declare bankruptcy, you still must pay your student loans back. One of the only ways you can get out of paying your student loans is in the event of your death, or if you qualify for certain student loan forgiveness programs. 
Not sure where to begin your search? Here’s our list, in no particular order, of some of the best private student loans offered by the top lenders. To compile it, we looked for established lenders offering competitive rates and additional benefits which are detailed below. Of course, there are other great choices out there, but think of it as a jumping-off point as you start your research.
“People often make the mistake of going with the option that has the smallest monthly payment, which causes them to pay thousands more in interest over the loan’s life span,” says Lauren Asher, the president of the Institute for College Access & Success, a nonprofit that works to make college more affordable. Aim to put 10 percent of your gross (that is, pretax) income toward your education debt. Go to studentaid.ed.gov to calculate which repayment plan fits your budget.
Ascent student loans is not as well known as some other student lenders, but its unique Independent loan makes it a good option for upper-class undergrads and grad students. It also offers a cosigned loan, which is more typical in the private student loan market. But for full-time juniors, seniors, and grad students, Ascent may be one of the few options to qualify for private loans and rates are competitive.
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.
Some private student loan lenders may ask you to submit documents to verify some of this information. Once approved, all lenders require you to sign a promissory note that details every aspect of the loan you’re taking out. Once you’ve accepted the loan and signed all your documents, the lender will typically send the funds directly to your school. If you requested additional funds for school certified expenses, check with the financial aid office at your school to find out how they handle those funds.

One of the flexible repayment options we offer is the ability to temporarily stop (postpone) your student loan payments. This is called a deferment or forbearance. While they can be helpful solutions if you’re experiencing a temporary hardship, these are not good long-term solutions. Why? Because in most cases, interest will continue to accrue (accumulate) on your loan while you’re not making payments and may be capitalized (cause interest to accrue on interest). When you resume repayment (which you will have to do eventually) your loan balance will probably be even higher than it was before. If you’re having financial trouble, why set yourself back even further by doing this? There are often better solutions available. Before choosing deferment or forbearance, ask about enrolling in an income-driven repayment plan. Under those plans, if you make little or nothing, you pay little or nothing. Additionally, with the income-driven repayment plans, you’re working toward loan forgiveness while making a lower payment. Before postponing your payments, consider your other options.
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