If you, like many others, are in need of additional financing for college after taking advantage of your child’s federal student loan eligibility, a private student loan may meet your needs. Before you choose a private student loan, consider the following:
1. Are you or the student able to make any payments while the student is in school?
Some lenders require payments of principal and interest, others interest-only payments, while the student is enrolled in college. If you or the student can make these payments, this is a great way to keep debt down. If you are not financially able to make payments while the student is enrolled, you should instead look for a loan that can be fully deferred—that is, one that does not require any payments while the student is enrolled in school.