10 Best Private College Loan in 2017

A large number of students apply for private college loan every year due to different reasons. Although, the students are awarded federal financial assistance in the form of grants and scholarships but these aids do not meet the financial requirements of every student. Due to the rapid increase in the educational expenditures, most of the students cannot continue their education within their budgets. In such conditions, the private college loan proves very supportive for the students and their families.

The trend of private student loan has been increased by the last decade because it became very tough for the students to earn their college degree due to short budget. Currently, millions of students rely on private college loan to fill their educational needs.

private college loan

Due to increasing trend of the private loan, many banks and online lenders are offering loan facilities to the college students. No doubt that the banks earn the reasonable profit from the money they lend. Therefore, the bank management set the policies and conditions which go in the favor of their bank. The main benefit which goes to the students is the competition between the lenders. Along with earning a reasonable profit in the form of interest, the banks also try to attract a maximum number of students. So, we can see a reasonable decrease in the interest rate in the previous few years. Moreover, the banks have made the application procedure easier and faster. So, the students can avail the private loan facility when they need the money on urgent basis.

How to choose the best college loan?

Choosing the best loan out of multiple banks and online lenders is not an easy job for the students. Especially, when you are busy in studies and do not have enough time to search for a suitable lender. Moreover, every student cannot completely understand the terms and conditions regarding the loan. In the following bullet points, we have highlighted the important points that you must look into the bank or online lender offers before applying for the education loan. You may also make the best decision by comparing the offers of different banks or lenders.

Interest rate options:

The interest rate is the first important thing to be considered while choosing the bank loan. Although, every bank charges a certain interest rate on college loans but there are many banks that offer low-interest rate loans for the students. He conditions for the interest rate varies from lender to lender. Some banks offer fixed rates whereas the others offer variable rate associated with the increased and decreased economic conditions. Moreover, the banks also offer both the options tom the students. They can either opt for the fix rate loan or variable rate loan. While selecting the option from the fixed and variable interest rate, you may consult with any economic expert to know that which type of loan will be better for you.

Repayment plan options:

The terms of repayment also the important factor for the students because many of the students fail to repay the loan installments after choosing the strict options. This is the common mistake which most of the students make. Usually, the short term repayment offers to include low-interest rate but a number of installments are kept high.

Term length plans:

The flexibility in term length allows the students to set a suitable repayment plan. The terms length varies with the banks and interest rates. Different banks offer different rates for long as well as short-term loans. Before, applying for the college loan, compare the term length and total amount to be repaid for equal term period. It may help you to take a right decision for your future plans.

Comparison of 10 best private college loan lenders:

Keeping in view the above mentioned important points, we have shortlisted 10 best private college loan, lenders. These banks are flexible in interest rates, term length and repayment options as compared to most of the private banks. Definitely, you will select one out of the banks which closely meets your requirements. To make the selection process easier, we have to make the comparative chart in descending order. The chart reflects the lenders with the low interest rate on the top. So, the bank or firm on the top of this comparison chart may be your first option. However, your choice may be the different because of eligibility criteria and term length which you can decide better.

S No	Lender	variable Interest rate	Fixed interest rate	Eligibility Criteria	Flexibility in repayment plan
1	LandKey	2.43% -8.26%	3.25%- 7.51%	Undergraduate, graduate and Masters	Loan term for repayment plan from 5-20 years
2	Common Bonds	2.56%-6.73%	3.37%-6.99%	Undergraduate, graduate and Masters	5-20 years repayment plans
3	Purefy	2.6% – 8.39%	3.5% – 8.39%	Under graduate, graduates and the parents of dependent.	5-15 years loan term with flexible repayment options
4	SoFi	2.75%-6.75%	3.37%-7.51%	New private undergraduate, graduate and professions	5-20 years repayment plans
5	SUNTRUST	2.75%-9.58%	4.75%-11.04%	New private undergraduate, graduate, and students parent loan	Loan term and repayment plan options 7-15 years
6	Citizens Bank	2.99% – 9.99%	5.25% – 11.75%	New private undergraduate, graduate, and students parent loan	Repayments plans for 5, 10 and 15 years
7	SallieMae	3.00% – 10.01%	5.74% – 11.85%	New private undergraduate and graduate students	Flexible repayment plans from 5-15 years

8	Darien Rowayton Bank (DRB)	3.64% – 6.54%	4.2% – 7.45%	Under graduate, graduates and the parents of dependent.	5-20 years loan term with flexible repayment options
9	PNC	3.99% – 11.03%	6.26% – 12.99%	Undergraduate, graduate, health professions, residency, & bar loans	Flexible repayment plans up to 15 years
10	Earnest	Starts from 2.76%	Starts from3.75%	Under graduate, graduates and the parents of dependent.	Loan term and repayment plan options 5-20 years

When do you need cosigner assistance?

If you want to apply the private college loan for the first time, you will need cosigner assistance. However, after building the trustful repayment record, you will not need the cosigner for further loans. Usually, the cosigner guarantee is released after 12 to 48 months of a good track record of repayment.