Questions to Ask When Considering a Private Loan

If you decide to take out a private loan, it is important to realize that you have made a decision that will impact your life after graduation. You should consider a number of different factors.
 

1. How much in total loan fees will I pay?

2. Do I have to start paying this loan back while I’m in school?

3. What is the current interest rate and how is it calculated?

4. How long do I have to repay the loan?

5. Are there any enrollment requirements? (Undergraduate; full or part-time; in a degree seeking program, etc.)

6. Do I have a grace period with this loan?

   • If yes, how long is the grace period?

7. What are my repayment options?

8. How strict are the credit requirements?

9. Do I need a co-signer? Is my co-signer creditworthy?

10. How long does the application process take?

11. How often does the interest get capitalized?

12. Do I have any deferment options?

13. When will my first payment be due?