Getting a college education can be expensive not everyone can afford it. This is where taking a student loan can help you out. But before you consider taking out a student loan it is important to know how they work. Always try to minimize your loan amount as student loan debt is a burden that you will carry for a long time if you act too hastily and borrow more than you can pay off.
You can borrow from any lender that you want. However, you need to see if you can borrow through loans offered by the Government programs as they are typically the best. If you still need more after you have borrowed everything you can using Government loans, you can then turn to private lenders. Here is a list of the top-rated private banks that offer student loans:
- Sun Trust Bank: SunTrust’s custom choice loan has the lowest possible APR on both variable and fixed rate private student loans. Their variable APR range lies between 3.37-10.43% and their fixed APR ranges between 4.75-11.50% APR. You also have the option of choosing from a 7, 10 or 15 year term and fully defer your payments until after you graduate. They do not charge an application fee and you can easily apply for the loan online.
- Discover: Discover scores well with its low APR ranges, auto pay discount, maximum loan term, full deferment option and lack of application fees. However Discover only offers 15 year terms and although you may be able to pay back your loans more quickly, you will lose out on the shorter term loans which tend to have lower interest rates.
- Wells Fargo: Wells Fargo also offers student loans, but like Discover they only offer 15 year terms. They, however, do not charge an application fee and it is easy to apply online for the student loan.
- College Ave Student Loans: The online application of College Ave is easy-to-use. You can choose between an 8, 10 or 15 year term.