Private Student Education Loans
Are Tougher To Find!

There's no doubt private student education loans are tougher to find. Many of the largest lenders, like Bank of America, have suspended all student loans of any type. Many local banks, credit unions, and state agencies have greatly reduced or eliminated student loans too.

Credit scores requirements have increased dramatically too. Prior the latest banking problems a credit score of 620 was sufficient for most private student education loans. Now the credit score requirements are above 650 and may be as high as 700 at many lenders.

So credit scores are important, even for student loans. The most common problem with credit scores for young people or potential students is lack of credit history. Since no records of credit exist, credit scores will remain low. Often well below the credit score of 650 minimum requirement by lenders.

There still are some sources available for private student education loans but you need a good credit score and history. You can raise your credit score in a matter of months if you follow our Repair Your Credit in 30 Days program. You can see good results in 30 days, even better in six months. Depending on your current credit score, it may take up to a year or longer.

Another limiting factor that many prospective students aren't aware of is that many of the private student education loans lending organizations are cutting off any relationship or loaning money to certain school' students. Schools with a higher dropout rate also have a higher default rate on student loans. 

Private student loans have always presented a challenge but now lenders are very strict in their requirements and there are no guarantees or limits on interest rates. Most of the government sponsored student loans have a cap of 8.7% or less. Private student loans can be anywhere from 4% to 13%. Given the current economics, most are toward the higher end of 11-13%.

As you can imagine, the higher your credit score, the lower the interest rate. Over a 10 year period, that can mean 1000's of dollars in interest. Taking a year to increase your credit score and also save up some extra money to reduce the loan amount, can make a huge difference in the cost of money borrowed.

Many schools Financial Aid Offices are very knowledgeable on local sources for student private loans and will be happy to help you with any paperwork. While you're there and have a pen, make sure you apply for any scholarships. There are both need and merit based local scholarships available at many schools from local clubs and community organizations.

Another source of possible financial aid can come from employers. If you are working full or part time, your employer might offer tuition assistance or other student private loans program. This could also be true of your parents employer, so don't forget to check with your parents employers too.

First year students have the biggest challenge in finding private student loans. Most colleges don't send out acceptance letters until May 1st of each year. That gives a window of three months to find, apply, and get approved for any loans necessary for the fall term. That may sound like a lot of time, but it's not.

Here's a few tips that can help with finding the best possible student private loans:

• Start doing research early, don't wait for May 1st
• Check with employer for any financial aid if working and parents employer too.
• Check into all local financial institutions at your home town and college town.
• Once accepted, immediately contact school's Financial Aid Office.
• Consider all your options, if working for a year helps you qualify, don't rule that out.