Private School Loans-Hard to Get?
It is getting harder and harder to acquire private school loans in the economy that we live in today. Credit is tighter and that means that banks are a lot more selective in how they dole out loans. The fear factor is definitely in play here. So if you have no income or credit of your own, you as a college student may find it more difficult to get a private loan for school.
You need to know just what the bankers are looking for in deciding to approve a loan.
1. Your Credit history. Even though you may not have any credit to speak of, the banks will still check you out to see if you have defaulted on a loan or if you were late with any payments.
2. You may find this hard to believe but they will check out the school you will attend to see how high the graduation rate is. The higher it is the more likely you will be able to pay the loan back. You may have to ask your financial aid office to point you to a lender who will work with your school.
3. This one is extremely important. Your co-signer will weigh heavily on whether the bank will loan you the money. He or she should be someone with top credit, a good job and income and a high credit score. This could be your parents or a close relative or friend who is able to document his/her income.
If you are having problems acquiring a private school loan, check in with your financial aid office at the school you are going to attend and let them steer you to the lending institution that will aid you in getting the money you need to attend school.