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.
U-fi® is a registered trademark of Nelnet, Inc., for products and services provided by Nelnet Consumer Finance, Inc. You should exhaust lower-cost federal borrowing options before turning to non-federal loans. You are, of course, not limited to seeking loans or other products from U-fi.com, and are free to obtain information and loans from all other providers of student loans and related products.
All loans must be in grace or repayment status and cannot be in default. Borrower must have graduated or be enrolled in good standing in the final term preceding graduation from an accredited Title IV U.S. school and must be employed, or have an eligible offer of employment. Parents looking to refinance loans taken out on behalf of a child should refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for applicable terms and conditions.
LendKey funds loans through partnerships with community credit unions and banks, but all loans remain serviced by LendKey so the bank or credit union behind the scenes is invisible to borrowers. LendKey doesn’t offer parent loans, it offers loans to students only. It also offers less flexibility for repayment while in school. But, there are no origination or prepayment fees and interest rates are quite competitive.
“If you refinance a federal loan into a private loan, you walk away from important federal benefits and consumer protections, such as income-driven repayment, loan forgiveness programs, default resolution options, flexibility during times of hardship and discharges based on disability or death of the borrower,” said student loan lawyer Adam S. Minsky.
The primary cardholder is responsible for the debt. There is no cosigner release option. Cosigners may be released after a series of qualifying, on-time monthly payments. This varies by lender. Cosigners may also be released via student loan refinancing. And this includes the option to transfer debt from the parent to the student (through select partners). Eligibility is based on credit an income verification.
Private student loans are credit based. Students with no credit history or a low credit score may find it difficult to qualify for a private student loan on their own. Students may have the option to apply for a Discover student loan with a creditworthy cosigner. By applying with a creditworthy cosigner, you may improve your likelihood for loan approval and may receive a lower interest rate.
If you have good credit, you can usually get a better interest rate. You can also choose a shorter repayment term so you can pay off your loans faster. The downside is that you give up protections like deferment of income-based repayment plans on federal loans, which puts you at risk if you lose your job and can’t afford student loan payments for a while.
Variable interest rates are based on either the Prime Index or the London Interbank Offered Rate (LIBOR) Index and will change periodically if the index changes. Similarly, your monthly payment will increase or decrease as the interest rate changes. Variable interest rates tend to start lower than fixed interest rates, but may increase over the life of the loan.
All loans must be in grace or repayment status and cannot be in default. Borrower must have graduated or be enrolled in good standing in the final term preceding graduation from an accredited Title IV U.S. school and must be employed, or have an eligible offer of employment. Parents looking to refinance loans taken out on behalf of a child should refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for applicable terms and conditions.
The information provided on this page is updated as of 11/21/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at hello@earnest.com, or call 888-601-2801 for more information on our student loan refinance product.

If you have good credit, you can usually get a better interest rate. You can also choose a shorter repayment term so you can pay off your loans faster. The downside is that you give up protections like deferment of income-based repayment plans on federal loans, which puts you at risk if you lose your job and can’t afford student loan payments for a while.
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers.
If you or your child graduated before July 1, 2006, it pays to roll multiple federal loans into one—you’ll lock in an interest rate that’s lower than what you’re paying on each separate loan. Earned a diploma since then? All federal student loans now carry fixed interest rates, so there’s no financial benefit to consolidating. (And it’s highly unlikely that you’ll be able to combine any variable private loans.) Nevertheless, if you have trouble keeping track of payment deadlines and have been hit with late fees on occasion, go ahead and consolidate. (For more information, go to SimpleTuition.com.) You’ll save some dough by doing so.
There are no application, origination, or late fees from Discover. In fact, there are no fees at all. Discover doesn’t even charge late fees. That’s a unique and possibly valuable feature for some borrowers. In addition, Discover offers a 1.0% cash reward on each new student loan for borrowers with a 3.0 or better GPA. That’s a great good grades discount and another unique feature that makes Discover a good option for student loans.
Federal student loans, also known as Direct Loans, are funded by the government and may be awarded as part of your financial aid package if you completed the Free Application for Federal Student Aid (FAFSA®). They feature fixed interest rates and offer several repayment options. Private student loans are offered by banks or other lenders, are credit-based and have fixed or variable interest rates.
Loan tip#9: Since the Department of Education sets virtually no student loan borrowing standards to vet would-be borrowers, and outstanding student debt is now reported to be 1.3 trillion dollars, many bad-actors in the business of education have been for years falling over themselves attempting to gain access to this seemingly endless taxpayer funded pot of gold. Isn’t it past time that the DoED became more seriously proactive in protecting the hoards of naive student borrowers on the front-end before they fall victim to many post secondary schools that spend more on marketing than insuring that retention and graduation rates along with educational standards do not perpetuate the moral hazard of not having to perform to be enriched. The quid pro quo for schools that derive 80-90% of their revenue from these loans should not be measured arbitrarily in ever changing arcane regulations but in the firm expectation that graduation rates of 3% or even 30% (over a six year allowable tabulation period) are clearly unacceptable. Without this firm line in the sand drawn, there is no impetus for these businesses to effect positive change. Good, bad or indifferent, they know they will get a payday. Until strictly quantifiable measures are undertaken, the department’s purported advocacy for for the underserved student will continue to be gamed by some ingenuous students and many avarice colleges alike.
This site does not negotiate, adjust or settle debts. All federal student borrowers are able and encouraged to apply for any federal repayment or forgiveness programs through the US Department of Education for free without paying fees to any entity. Nothing on this site constitutes official qualification or guarantee of result. StudentDebtRelief.us is a private company not affiliated with the Department of Education of the Federal Government.
Compare offers from multiple lenders including banks, credit unions and online lenders to find the lowest interest rate. Depending on the lender, you may be able to choose a fixed or a variable interest rate. A fixed rate stays the same throughout the life of a loan. A variable rate may start out lower than a fixed rate, but could increase or decrease over time depending on economic conditions.
Generally, borrowers should prefer loans that are pegged to the LIBOR index over loans that are pegged to the Prime Lending Rate, all else being equal, as the spread between the Prime Lending Rate and LIBOR has been increasing over time. Over the long term a loan with interest rates based on LIBOR will be less expensive than a loan based on the Prime Lending Rate. About half of lenders peg their private student loans to the LIBOR index and about 2/5 to the Prime lending rate.
Also be aware that many private student lenders require a cosigner, usually a parent or other relative who would take over responsibility for the loan if you stop payments for any reason. That also means your payment activity impacts their credit score, so if you do sign up for a loan with a cosigner it is important to both of you that you pay on time.

Fixed rates currently run from 4.99 to 10.49% APR. LendKey is able to offer better than average rates because of the unique funding model. Credit unions are not for profit financial institutions, so they tend to offer more favorable rates and fees for all available products. With LendKey in the middle, you get a simple, high-tech experience with the savings and community power of a credit union.
Whether it’s completing the FAFSA to get federal student loans or submitting an application to a bank for a private student loan, applying for student loans can seem like a complicated process. There are a lot of steps and information needed from students and their families, so this guide can help you prepare for and navigate through any student loan application process.

As a general rule, students should only consider obtaining a private education loan if they have maxed out the Federal Stafford Loan. They should also file the Free Application for Federal Student Aid (FAFSA), which may qualify them for grants, work-study and other forms of student aid. Undergraduate students should also compare costs with the Federal PLUS Loan, as the PLUS loan is usually much less expensive and has better repayment terms.
Before you take out a loan, it’s important to understand that a loan is a legal obligation that makes you responsible for repaying the amount you borrow with interest. Even though you don’t have to begin repaying your federal student loans right away, you shouldn’t wait to understand your responsibilities as a borrower. Get the scoop: Watch this video about responsible borrowing or browse the tips below it.
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