A Private Student Loan with Teri.org

With cuts in education funding, and the price of tuition rising ever higher, many students are realizing that they need more funding for education. This is especially true for members of the middle class, who are not poor enough to warrant grants, but do not have the financial means to pay their tuition, fees, and other college-related expenses. And the price only rises for graduate students, who are not even eligible for grants. With a bachelor’s degree increasingly not enough, education of at least the master level is required in some fields. Funding a graduate education can be especially daunting, with fewer options and more expenses. A private student loan to supplement an education is often the only choice.

One of the most helpful places to search out private student loans is www.teri.org. This Web site offers a variety of options for private student loans. The organization takes what your school assumes you need to cover tuition, fees, books, food, and board and then sees how much Federal aid you have been awarded. The organization then finds lenders willing to offer you a loan for the amount of the shortfall. While any private education loan will have interest rates than a federal loan, they are still often much less than regular loans. A private education loan secured through www.teri.org has in interest rate of between 5% and 10%. A list of lenders and rates is given, and you can choose a lender that offers a fixed-rate loan if you wish.

Because a private student loan is issued, however, you will have to show adequate income to pay the loan back, or you will have to get a co-signer. Your credit will also be checked. This is not a federally guaranteed loan that only needs your signature. The terms are very similar to a federal loan, however. The lender will not try to collect on the loan until you have been out of school for six months. As long as you are attending school, you will have your grace period. Additionally, you can often work out deferment or forbearance schedules similar to federal loans. But you have to work them out with your lender.

It is important to realize that TERI does not actually issue private education loans. It merely acts as a facilitator to help you find a lender for your private student loan. But it is a powerful tool for those who need to find alternate ways of funding their education.

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