Alternative School Loans, a new relief

There is a wide spread gap between the cost of education and the amount of federal financial aid available to a student in order to meet the expense. To bridge the gap of funding comes the private financial lending or the Alternative School Loans. You can apply loans up to 100% of your tuition or education fee less the amount of financial aid received.

Benefits of Alternative Student Loans

Following are some of the benefits of Alternative Student Loan.

• Interest rates are as low as prime rate less 50% depending upon your credit history.
• The rates stated as an index, say prime or LIBOR plus margin.
• An auto debit repayment offers a discount of up to .25% on the ruling interest rates.
• No fees such an processing fee or prepayment penalty
• You can defer repayment of loan while you are in school or even up to six months after your graduation.
• The maximum amount of loan is 100% of the educational, room and boarding expense less the financial aid already received towards these expenses
• There is no time limit for loan application; you apply at any time during the year.
• These loans are issued based on the credit history of a person; hence students with no extensive credit history can apply with a credit worthy cosigner for speeding up the process of loan sanction.
• Flexible repayment period ranging from 15-25 years
• These loans are disbursed within 14 days from the date of application.
• These interest amounts may be tax deductible depending on government rules and regulation of the state

Sources of Alternative Student Loans

Banks, private lenders and other financial institutions offer private loans to students. These loans are offered to students who are US citizens or permanent residents. It is important to ensure that both the applicant and cosigner are credit worthy to apply. ]]> http://www.studentloaninfo.org/blog/alternative-school-loans/feed 7