College Bank Loan

A college bank loan can help students who may have trouble meeting college expenses. A college bank loan simply means students have borrowed money from a banking institution, similar to a house loan, car loan, or any other type of loan a borrower may choose to originate with a bank. College bank loans fall into the category of private school loans, and nearly every banking institution offers some type of student loan for those looking to pay for college. The frequency of both part-time and full-time college students taking out these loans remains high, 4% and 9% respectively. Though this seems small compared to the 50% of students who take advantage of federal funding for college as reported by the National Center for Education Statistics, recent census data suggests that nearly 40% of high school graduates go on to attain at least some college.

Do you have trouble paying for college?
Inquire about a college bank loan today.

Anyone with a strong credit history may prove eligible for a college bank loan. Unlike federal funding, which requires the borrower to demonstrate financial need, loans that originate with a banking institution favor borrowers previously exhibiting dependable and responsible financial habits.

Persons eligible for a college bank loan include:

• Undergraduates
• Graduates
• International students
• Students pursuing professional training or development

With nearly half of Americans attending an educational institution following high school, these numbers show that private college student bank loans remain an important source of funding for a large group of Americans. For any student having difficulty paying for college, a college bank loan should be one of the first resources considered to pay for school.

The speed with which banks process an application for a college loans makes these loans more useful for students who need money quickly when compared to federal loans, which take a long time to administer. Banks generally only take a few days to process a loan application with simple documentation, and may even offer an online application form. Banks also provide a level of security for students. Banks originate many loans and guarantee a level of debt management counselling and customer service that other loan lenders may not provide. When students enter into a contract with a reputable banking institution, the bank clearly defines the terms and conditions of the loan at the beginning of the loan’s life. Banks may offer fixed or variable interest rates with a host of repayment options. In addition, banks focus on credit history rather than financial need, which may help parent or student borrowers whose income disqualifies them from taking advantage of some types of federal funding.

The major difference between other types of bank loans and a private college loan is that legally college loans, even when borrowed from a private lender, cannot be discharged through bankruptcy. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 restricts borrowers from defaulting an any college loan, even a college bank loan. Luckily, most banking institutions offer a host of repayment and consolidation options that help graduates manage their debt after college. Borrowing money from a bank rather than other types of private lenders may prove helpful because banks routinely offer debt management solutions for their borrowers.

A private bank loan for college helps students or parents who need more funding for college and have a good credit history. These loans do not require financial need and often they offer interest rates and repayment options comparable to federal loans. Because these loans remain competitive, in comparison to federal loans that do not compete, the smart student borrower may find that a college bank loan provides better funding solutions then even federally backed resources.

Do you have trouble paying for college?
Inquire about a college bank loan today.