Choosing a Private Student Loan

6/16/2021

graduation cap and money pile

If your federal student loans don’t cover all of your education expenses, and you’ve used up all other sources of education assistance such as scholarships and money you and your parents have saved for college expenses, consider a private student loan from the credit union to help make up the difference.

Private student loans, also known as alternative education loans, help bridge the gap between the cost of your education and the amount you can receive in federal loans. You can use private student loans for tuition, room and board, and other college expenses, such as study abroad.

When selecting a private student loan, consider:

  • The entire cost of the loan—fees and interest rate, plus any loan discounts
  • Credit criteria and approval
  • How often the lender will adjust interest rates
  • Monthly payment requirements and repayment options
  • Length of grace period and when repayment begins
  • Deferment and forbearance options
  • Reputation of the lender and customer service

For the best rates and repayment options, work with the credit union to take out a better private loan.



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