Private Student Loans
Private student loans, or alternative loans funded by banks and non-profit organizations, provide another source of financial aid for students. However, what they are really about is availability, flexibility and options.
Availability
Availability to a Private Student Loan is much more accessible for most people. Federal financial aid becomes more and more limited with rising tuition costs and inflation. Act Education Loans provide up to $40,000 per year. This is a far more realistic loan limit for many of today’s private colleges.
Flexibility
With a Private Student Loan, there are no threats of deadlines. With financial aid, there is another deadline to watch, another date to file paperwork by, another meeting or session to attend to qualify for aid. Act Private Student Loans gives you the flexibility to apply for a private loan whenever the need arises during your time as a student. Is tuition due before the semester starts? With a Private Student Loan, this is no problem. While federal loans may not disburse until a month into the semester, these private loans can fund in as few as five business days after receiving your completed application.
Options
Scholarships and financial aid can be restrictive. Scholarship hunting and financial aid can take time to generate results, and there are no guarantees that you will find what you need. Federal financial aid and federal student loans are based largely on demonstrated financial need (except for the Plus Loan), and if you fall in the category of “not poor enough for aid, not rich enough to pay out of pocket”, federal financial aid may be no help at all. Act Alternative Loans do not require lengthy applications or paperwork like scholarships and the FAFSA do.
