Private loans are offered by private lenders like banks and credit unions. They can help bridge the gap between the cost of your education and what you receive in federal financial aid. Important considerations include:
Interest Rates: Vary widely and can be either fixed or variable. Often higher than federal loan rates. Repayment Terms: Less flexible than federal loans. You might not have options like income-driven repayment plans or forgiveness programs. Credit Requirements: A strong credit score or a co-signer may be required to obtain a private loan with favorable terms.
