Process To Attain Student Loans

College costs have risen at a rate about double the CPI since 1968. I think that student loans have been a big factor in allowing colleges to have runaway budgets and almost total disregard for any cost/value return to the students. College loans are some of the most flexible and consumer friendly loans available. Understanding how to use the process of consolidating student loans to your benefit can help you to save a great deal of money. CollegeInvest is just such a resource.

College costs nowadays are through the roof and are only expected to rise in the future. Most students and/or their parents need to take out some type of loan to fund those ever-increasing tuition bills, but what if an individual has poor credit? College scholarships also aren't usually need-based, so anyone can apply (some are, however, so be sure to file your FAFSA ).

College officials have received gifts, trips, stock options and other benefits from lenders, while some colleges have agreed to recommend certain lenders if those lenders share the proceeds. In other cases, lenders provide staffing or call centers for a campus, posing as college representatives while answering students' questions about financial aid, including loans.

Private student loans, such as the Act Education Loan from the Student Loan Network, can help to bridge the gap between federal aid, the actual cost of education, and expected family contribution. Loans such as the Act Education Loan are independent of federal financial aid computations, and are based on the creditworthiness of the borrower, rather than need-based formulas.

Private student loans are based on an applicant's credit worthiness, often require a co-signer, are not need based, and upon approval the funds are usually sent direct to the applicant. Private Student Loans are issued based on credit thus carrying higher interest rates.

Private lenders may require a credit check and/or an income-to-debt ratio check on either you (the borrower), co-signer or both. These loans are not based on financial need but lenders may provide different types of loans programs based on a student's level of study. Private lending institutions offer student loans thinking that students will make a higher income as their level of education increases. Unfortunately, this does not always happen.

Private student loans take into consideration the credit history of the applicant to determine eligibility for the loan. In the event that the student has a bad credit record, the lending agency will require a cosigner having a good credit.