Students are awarded financial aid based on eligibility or need, but often times their award package doesn't cover all of their expenses. In cases like these, many families look to additional loans as a way to afford tuition, housing and fee's. The process of finding a private loan can be quite daunting, so never fear Savvy Student is here.
Our first piece of advise is to do your research...
A website that we often refer to and use is BorrowSmart. A link is provided on our Student Financial Services website. BorrowSmart is a tool that allows borrowers to compare different loans, their interest rates and terms to determine which one best meets their needs. The difficulty with securing a private loan is the time in which it takes to be approved and certified before it finally reaches the student's account.
Second, plan accordingly and apply early.
In the mind of a college student and/or parent footing the bill, if the funds do not hit the account when they are supposed to disaster strikes. Many students rely on outside loans to pay for food and housing, on or off-campus. If the funds are not readily available from a loan the student is stuck in a very unfortunate situation. Even if a private loan has been approved, the funds may not be available to the student until an advisor has "certified" the amount which can only happen with cooperation from the bank.
So, to avoid these private loan pitfalls the best thing to do is prepare ahead of time by doing research to determine which lender you wish to work with. Apply early, so that the loan will be approved and certified well before the bill comes due. Credit applications are typically valid for 90 days. If you begin the process two months ahead of time you should be well on your way.By waiting, the loan may be delayed. If there is a delay on funding covering an account balance, the student may not be able to add or drop courses thus increasing the student's anxiety and frustration.
If you have questions about this process please feel free to stop by the Office of Student Financial Services to get assistance. We can not tell you which lender to select, but we can offer up advice on the process.
Good luck,
Savvy Student
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