Jared Said:

Are private student loans risky and are the interest rates really high?

We Answered:

When you run out of other options to get funding for your education, it may be time to get a private loan. These loans, also called alternative loans, come with a number of features and are somewhat flexible. Here is what you need to know about how to choose a private loan for your education needs.

http://www.worldbestloans.com/student-loans.htm

Just how much you can borrow is in accordance with your credit rating. A private loan gives you the option to borrow just what you need. Assuming you have some funding from a lower interest source, you will only want to borrow what the other lending agencies did not give you for your educational needs.

Mark Said:

What is the worst thing that can happen if I can't afford private education loans?

We Answered:

Well, the best thing is that you CAN get a federal student loan. Here's what you need to do to get one:

1) Fill out the FAFSA. This will determine if you are eligible for financial aid. Go here:
http://www.fafsa.ed.gov/

2) Once you are eligible for aid, choose a government-based student loan. The best loan to get is a Federal Perkins Loan. These have low interest rates and the government will help you pay it back as long as you stay enrolled in school. You also don't need a cosigner or good credit for it. For more info go here:
http://www.studentfinancedomain.com/stud…

3) The next best loan to get is a Subsidized Stafford Loan. This has many of the same benefits as a Perkins Loan. Learn more here:
http://www.studentfinancedomain.com/stud…

You can also try to get a grant or scholarship, which is free money that you won't have to pay back. You can read about them here:
http://www.studentfinancedomain.com/fina…

And here are some good sites that offer grants and scholarships:
http://www.fedmoney.org/
http://www.freegovmoney.net/
http://www.grants.gov/
http://www.findtuition.com/scholarships/
http://apps.collegeboard.com/cbsearch_ss…
http://www.educationplanner.com/educatio…
http://www.studentawards.com/
http://www.college-scholarships.com/

Good luck!

Douglas Said:

Can I refinance private education loans?

We Answered:

I don't see why not. You just apply for a loan and use the money to pay off your Staffords, then pay the loan.

Willie Said:

Private education loans question?

We Answered:

Have you filled out the FAFSA? Federal loan limits have increased by $2,000 this year. Most people qualify for Stafford loans, because they are no credit check.
If you've done this and you still have a gap, try parentPLUS loans if you are dependent or gradPlus if you are independent. These have a credit check, but it is more relaxed than private loans. If you are denied, then you qualify for an extra $6,000 in Stafford loans.
If this is not enough, check with your financial aid office and find out if they have any university loans. If this does not work, try peer to peer loans. Good Luck!

Michele Said:

Reconsolidate Private Education Loans?

We Answered:

You cannot consolidate private ed loans into federal consolidation loans. You can consolidate your private education loans together. The benefit of doing this is you get one monthly payment, and if you extend your repayment term, you can lower the amount you pay each month. However, if you pay only the minimum each month, you will end up paying more interest over the life of a loan (just like a credit card).

Private student loans (including consolidation loans) are not guaranteed by the government, and are therefore a greater risk to the lender. This is why they are credit based. Your interest rate will be based on your credit history. It can help to get a cosigner with good credit - the cosigner can usually be released after a certain number of on-time payments.

Here are the details on private student loan consolidation: http://www.salliemae.com/after_graduatio…

Claude Said:

Does the government deduct money from tax refunds for Private education loans that have been defaulted?

We Answered:

I don't think that taxes will be deducted, but debt "forgiveness" is taxable income. The amount taxable is the remaining principal that you don't have to pay, not the interest.

Here are the four exceptions:

1) If the cancellation is a gift or bequest
2) If the taxpayer is insolvent or bankrupt
3) If the cancellation is actually due to refinance
4) If the loan qualifies as a student loan

Seth Said:

Does owning a property with a mortgage prevent you from getting private education loans?

We Answered:

No, it does not---not in ALL cases.

There are many people with mortgages, fulltime jobs and spouses working fulltime, who apply for loans for med school and law school and who successfully receive such assistance, via a combination of grants, fellowships, scholarships and loans.

Some scholarships require financial need, others simply require academic merit. Same idea applies for loans and grants.

If you want need-based loans and grants then the amount you receive might be less if you own a home and your spouse works fulltime, etc. But it doesn't mean that you are disqualified, in most cases, from applying or getting some amount of money from them.

Even using government- financed programs, it is possible to get the money you want, even if you own a home or other significant asset.

And, if you have any equity in your home at the time you apply for the loan, you can take out a bank loan with your home as the collateral, as well.

Call or go online at the nearest university that grants MD and JD degrees or PhDs in science or education and simply ask. There are specific grants for each of these specialty areas.

Some places I know you can google online to get info:

GrantDoctor, FastWeb, AAMC, GrantsNet, etc.