As students head off to college, dealing with the costs of education can be overwhelming. Add in the cost of living like food, books, and basic accommodations like furnishing a college room and the cost can grow quickly. Good news, financial aid has taken these things into account when calculating their cost of attendance. So, if you choose, you can maximize your financial aid to cover college-related costs. That means taking advantage of all your options, like scholarships, grants, work studies, on-campus jobs, and even student loans. But what happens when all of that is still not enough to pay for college?
The federal government is by far the single largest source of financial aid to college students, but there are also state government loans, college-sponsored loans, commercial lending institutions and credit unions which also offer private student loans.
Private student loans are meant to fill the gap in financial aid that is left between the Cost of Attendance (COA) and the Federal loans/aid you’ve received. Private loans are not offered through the federal government, so it’s important to look for a loan program from an institution you trust. These loans are in the name of the student but often require a co-signer. They are not guaranteed or subsidized by the government. Instead, they are based on the credit score of the student and/or the credit score of any co-signer they have on the loan.
Look for a Private Student Loan with zero origination and other additional fees, low interest rates, flexible deferment and repayment options, and an easy application process. You’ll also want to make sure that the loan is certified through the school – which means the school verifies the amount you need to borrow to prevent you from borrowing too much or too little. Funds should be given directly to the school and any difference back to the borrower for books, transportation, technology and other necessities.
Altra Federal Credit Union has partnered with the Credit Union Student Choice Program to offer Private Student Loan solutions. By choosing your credit union’s program over other alternative lenders, you’ll enjoy significant cost-savings and consumer-friendly terms. Try our loan comparison calculator to see just how much lower rates and zero fees can save you over the life of the loan. The Credit Union Student Choice private loan solution is NOT currently available for Graduate Students.
Visit Altra.Student Choice.org for educational videos, articles, and resources about financial aid options, paying for college, managing your money and more, or check out our Frequently Asked Questions.
Article sponsored by Altra Federal Credit Union, serving 87,000+ members in all 50 states and around the globe, including two locations in Clarksville. This information is intended solely to provide guidance and is not financial advice.