Top 5 Private Student Loan Providers

There is no doubt that federal loans will give you the most affordable terms and rates, however these loans are oftentimes not enough to cover all of the expenses in college. To make ends meet, it is usually necessary to take on a private student loan. So where can you get private student loans with competitive rates? Below are the top 5 private student loan providers, with descriptions telling you why they’re the best.

1. Sallie Mae – This provider currently holds the market leading rates with as low as 2.25% APR. Plus, it is also possible to get a 0.25 point interest deduction should you choose to make automatic debit deductions thus bringing the rate even lower. Aside from competitive rates, Sallie Mae also offers incentives and rewards everytime a student eats out, shops online, buys gas and so on. Sallie Mae also offers three different payment schemes such as Interest Repayment, Fixed Payment and Deferred Payment, allowing students to choose the type of loan that suits them best.

2. Citi Bank – CitiAssist loan from Citi bank also offers a low interest rate starting at 3.08% APR. One of the perks offered by CitiAssist is their no origination fee policy, helping students save more from their loans since origination fees usually amount to a good 3% of the loan amount. CitiAssist also offers generous repayment terms such as a 6 month grace period and 15 years to pay. There is also no penalty for prepaying or paying early.

3. US Bank – Student loans for US Bank features interest rates that start at 3.39% APR. And instead of giving a 0.25% reduction with auto payment, they can offer as much as 0.50% interest rate deduction. Other perks from US Bank is the 2% Principal Reduction upon graduation plus a 1% Good Grades perk.

4. PNC Bank – PNC Solution Loans are giving out a low interest rate of 3.30%. It also offers a 0.50% reduction with auto payment. Another good thing about PNC Student loans is that it charges no application or origination fees. Payments can be made for as long as 15 years, making it less heavy on the part of the graduate.

5. Discover Bank – Discover Student Loans offer the lowest rates after Citi Bank. It’s minimum interest rate is currently at 3.25%. They also offer a 0.25 reduction for auto payments and just like US Bank, they are giving away a 2% Principal Reduction upon graduation. And if that isn’t enough, Discover Student loans also doesn’t charge a cent on origination fees.

All these lenders provide a fast and easy online application so you will know if you’re qualified. Some of the lenders will encourage you to bring in a co-signer in case your credit doesn’t qualify. Whatever the case may be, these private lenders should be enough to help you get the financial boost you need during college.

PNC Solution Loans Scraps Origination Fees On Private Student Loans

The best place to get a student loan is always with the feds. However, federal student loans such as Stafford loans are often not enough to cover the rising cost of education. Because of this, most students need to get an additional private student loan to cover the rest of the expenses. Choosing your lender may prove to be a difficult choice, however lower fees and interest rates are always a good place to start.

PNC Bank announced earlier this year that PNC Solution Loans are no longer charging origination fees. Aside from that, they are offering a 0.50% interest rate reduction for students who opt to use automatic payments. These two deductions can result in large savings especially since origination fees are usually at a hefty 3%.

Other perks from PNC Solution Loans include the ability to decide whether to pay off the loan after graduation or to start paying as soon as possible in order to save on interest. The loan repayment term is also long, as lengthy as 15 years, giving you less stress about heavy payments. PNC Solution Loans can also cover all your college needs, minus financial aid.

The qualifications include:

– The student must be enrolled for at least half-time in a degree program at an approved school
– Creditworthiness must be established. If the student cannot offer a credit standing, he may opt to bring in a co-signer with good credit to co-sign his loan. Creditworthiness can be established by satisfactory credit history or employment history for 2 years, proof of current income, and being a US citizen or permanent resident for at least 2 years.

The minimum loan amount is $1,000. Aside from undergraduates, PNC is also offering loans for graduates or professionals, health professionals, and those who are studying and taking the Bar exam.

4 Smart Tips To Get A Low Private Student Loan Interest Rate

When getting any kind of loan, student loan or home mortgage it may be, the one thing we are all nervous about is the interest rate. After all, it determines how much in total we will be paying at the end of the road. For those who were smart enough to do some due diligence before applying, you may just be rewarded with a lower interest rate. Here are 4 smart tips to get you the rate you want.

1. Take Advantage of the 30-day Credit Window – We all know that one of the things that affects our credit score is shopping for the best interest rates. As ironic as this may sound, jumping from one lender to another in the hopes of finding a good rate can actually bring your score down. However, there is a 30-day credit window for private student loans that can afford you the luxury to do just that. At the end of the 30-day window, you will appear as if you’ve only gone to one lender (whether you’ve accepted them or not). This window can help you because it allows you to have lenders calculate your potential rates and it gives you the liberty to decline them or look for a better offer.

2. Make Use of APR Reductions – With the current economic state, lenders are all vying for your money. This means they have little promotions that make the loan juicier for you. This includes reducing your APR. Commonly, there is a reduction of 0.25% APR should you choose to pay off your bills via an auto-debit function. Plus, some banks will give even more deductions if you pay off your accounts through them. They can call it double business, but you can call it opportunity.

3. Know your Index – Before, the only student loans available are those variable upon an index. Rates are attached to a certain index, and the chances of it going up or down will depend upon said index. The most commonly used are London Interbank Bank Offering Rate (LIBOR) and Prime Interest Rate. Before committing to your interest rate, check the volatility of these indexes over a 6-month or 12-month duration. If you notice that the index is swinging dramatically, so will your rate. Just recently however, fixed private student loans have become available with a rate that doesn’t change for the length of your term.

4. Bad Credit Score? Get a co-signer – And finally, if you have a bad credit score, you can opt to bring in a co-signer with a strong credit history. This could be anyone, your parents, grandparents, extended family members, and basically anybody you can find who’d agree.

Most business deals are usually made with negotiations. When a lender gives you a rate, don’t immediately settle for it. Remember, there are ways to bring it down.