Private student loan volume grew much more rapidly than federal student loan volume through mid-2008, in part because aggregate loan limits on the Stafford loan remained unchanged from 1992 to 2008. (The introduction of the Grad PLUS loan on July 1, 2006 and the increases in the annual but not aggregate limits had only a modest impact on the growth of private student loan volume. The subprime mortgage credit crisis of 2007-2010, however, limited lender access to the capital needed to make new loans, reining in growth of the private student loan marketplace.) The annual increase in private student loan volume was about 25% to 35% per year, compared with 8% per year for federal loan volume.
The fees charged by some lenders can significantly increase the cost of the loan. A loan with a relatively low interest rate but high fees can ultimately cost more than a loan with a somewhat higher interest rate and no fees. (The lenders that do not charge fees often roll the difference into the interest rate.) A good rule of thumb is that 3% to 4% in fees is about the same as a 1% higher interest rate.
Publisher Disclosure: PrivateStudentLoans.com is an independent advertising-supported platform for consumers to search, compare and apply for private student loans. PrivateStudentLoans.com is not affiliated with any colleges or universities. Lender search results do not constitute an official college preferred lender list. PrivateStudentLoans.com receives compensation from lenders that appear on this site. This compensation may impact the placement of where lenders appear on this site, for example, the order in which the lender appear when included in a list. Not all lenders participate in the Edvisors site. Lenders that participate may not offer products to every school.
We may agree under certain circumstances to allow postponement (deferral) of monthly payments of principal and interest for a period of time immediately following loan disbursement (not to exceed 6 months after the borrower’s graduation with an eligible degree), if the borrower is an eligible student in the borrower’s final term at the time of loan disbursement or graduated less than 6 months before loan disbursement, and has accepted an offer of (or has already begun) full-time employment.
The other thing to consider with repayment is what your repayment term will be after you leave school. Most often, lenders will offer multiple term lengths ranging from 5 to 15 years, though some do offer longer terms. The longer your term, the lower your monthly payment will be, but the more your loan will cost over time, and vice-versa for shorter terms.
Publisher Disclosure: PrivateStudentLoans.com is an independent advertising-supported platform for consumers to search, compare and apply for private student loans. PrivateStudentLoans.com is not affiliated with any colleges or universities. Lender search results do not constitute an official college preferred lender list. PrivateStudentLoans.com receives compensation from lenders that appear on this site. This compensation may impact the placement of where lenders appear on this site, for example, the order in which the lender appear when included in a list. Not all lenders participate in the Edvisors site. Lenders that participate may not offer products to every school.
For Associates Degrees: Only associates degrees earned in one of the following are eligible for refinancing: Cardiovascular Technologist (CVT); Dental Hygiene; Diagnostic Medical Sonography; EMT/Paramedics; Nuclear Technician; Nursing; Occupational Therapy Assistant; Pharmacy Technician; Physical Therapy Assistant; Radiation Therapy; Radiologic/MRI Technologist; Respiratory Therapy; or Surgical Technologist. To refinance an Associates degree, a borrower must also either be currently enrolled and in the final term of an associate degree program at a Title IV eligible school with an offer of employment in the same field in which they will receive an eligible associate degree OR have graduated from a school that is Title IV eligible with an eligible associate and have been employed, for a minimum of 12 months, in the same field of study of the associate degree earned.
“People often make the mistake of going with the option that has the smallest monthly payment, which causes them to pay thousands more in interest over the loan’s life span,” says Lauren Asher, the president of the Institute for College Access & Success, a nonprofit that works to make college more affordable. Aim to put 10 percent of your gross (that is, pretax) income toward your education debt. Go to studentaid.ed.gov to calculate which repayment plan fits your budget.
Many students ignore their loans until after graduation, but it’s wise to start paying them off while you’re in school. Get a part-time job while you’re in college and dedicate most or all of the earnings to your student loans. If you can pay off $800 a month while you’re in school, then you’ll have paid off $30,000 or more by the time you graduated. For some people, that’s their entire amount owed!

“Some borrowers may be better off targeting the highest-rate loan for quicker repayment,” said Kantrowitz. “You can’t do that after consolidating. If the interest rate on the refi will be higher than most of the interest rates on the refinanced loans, except for one or two, you may save money by accelerating repayment of the highest-rate loans instead of refinancing.”
Say, for example, you have a couple with a combined college debt of $50,000. Annually, they are making $100,000 combined in salaries. By establishing a budget with a goal of 3-years completion, they can make the necessary adjustments in their day-to-day spending to meet that goal. This budgeting might even reveal more money they can put toward diminishing the principal balance.
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