Consolidating student loans sallie mae
Over the past decade, college costs and fees have risen 3.5% faster than inflation each year on average.
This is a common situation, but it’s important that you research all of your scholarship, grant and loan options before getting a private student loan.Depending on your need, you may qualify for additional grants or subsidized loans.If you max out your federal student loans and still need assistance, you may want to think about getting a private student loan as well.Some of the lenders we reviewed do offer that – but you’re taking a risk because most forbearance programs are arbitrary, meaning the loan companies can decide whether or not to grant you the forbearance period.You might need private student loans to fill the gap between federal loan funds and the actual costs of college attendance.Federal loan limits depend on whether you are still considered a dependent or if you are considered an independent student.
Limits also increase if you’re going to professional or graduate school.
Student loans are considered higher risk than car loans, house loans and other loans you can get from a local bank.
You will have to go to a lender that specializes in student loans or to a bank big enough to offer them.
Also, many student loan rates are variable rates, which means that they can fluctuate based on changes in the market.
Private lenders have no obligation to offer forbearance periods or to defer payments due to hardship.
Both are considered unsecured loans – this means that they’re riskier for the banks than secured loans, which have an asset or collateral behind them. The only asset behind an unsecured student loan is your future earning potential: your brain, essentially.