Anyone seeking to pursue further studies may be faced with the burden of student loans. CNBC has reported that the student loan crisis afflicts 44 million Americans, and amounts to $1.6 trillion collectively.
An economic fallout has become somewhat of a byproduct of the current pandemic, and the outlook of student loan debt has not gone unscathed. The College Board foresees that today’s university graduates will be leaving college with around $29,000 in debt.
As of recent headlines, one of President Joe Biden’s foremost actions during his first day in office was to extend the suspension of student loan payments, in order to follow through on his administration’s promise to tackle the debt crisis. This applies to federal student loans, thereby excluding those who may not qualify for these.
In this respect, here are some of the best private student loans in 2021, based on a host of factors to suit every kind of student borrowers’ needs.
CommonBond offers some of the best and most competitive interest rates in the market. It is also an ideal option for refinancing, with rates that begin at 1.97% APR for variable-rate loans. For fixed rate loans, the rate is 2.83%, and 2.62% for hybrid rates. This last option has a fixed rate for your first five years, and afterwards, you will pay a variable rate.
Refinancing terms range from five to twenty years, so you can make your monthly payments at an affordable price. In addition to this, CommonBond has parent PLUS loans refinancing, allowing student borrowers to transfer debt from their parents. You will also have the option to release co-signers when 36 months of repayments have relapsed.
Options for private loans include coverage for undergraduates, graduate students, and students of MBAs, dentistry, and medicine.
With an array of repayment options that include customization of terms and payment structures, College Ave may be an ideal choice. They have fixed in-school payments at a low price of $25 monthly, and interest-only payments when borrowers are still in school. Borrowers can make the most out of variable-rate loans as this has a lower initial rate, which grants them the opportunity to pay off their outstanding debt sooner.
There is also a full deferment for borrowers who are still in their studies. Interest can start immediately, with the full repayment of principal. Term options are available within a range of five, eight, ten, or fifteen years. Co-signers can be released after 24 payments, but this is not mandatory.
In addition to their co-signed and non-cosigned loan options, Ascent also has flexible postponement and payment reduction offerings. For lower monthly payments to begin with, there is also a graduated repayment plan. Forbearance is allowed if borrowers cannot make their payments due to financial burdens, from one to three months at a time for as long as this does not exceed 24 months in its entirety. However, interest will accrue during this period.
Loan terms are between five, seven, ten, twelve, or fifteen years, with maximum amounts of $200,000 per academic year. Certain individuals may be able to qualify for a graduation reward, which is 1% of the loan’s initial principal balance.
Those who do not have cosigners can benefit from Funding U’s private loan offerings. Some borrowers may not have a stream of stable income or credit history, which can hinder their access to qualifying for a loan. Undergraduate students can qualify for Funding U’s loans if they are 18 and above and are US citizens or permanent residents––albeit of certain states only.
Potential borrowers may have to meet certain criteria relating to their GPA, work experience, and extracurricular activities. Interest rates are between 7.99 to 14.49%, with the option to borrow amounts ranging from $3,000 to $10,000 every year.
As both a student loan refinancer and an undergraduate, graduate, business, and law school lender, SoFi has many of the standard offerings and more. This is a particularly desired option for graduate student loans, as it has membership benefits that these individuals can maximize, from financial planning to career coaching. They have an Unemployment Protection program that offers a suspension on payments for up to twelve months.
With SoFi, there are no late fees. Should you have a cosigner who has already utilized one of the company’s products, you may be able to get a discount of 0.125% on your interest rate. Loan terms are between five, ten, and fifteen years, with a loan amount of $5,000 to the total cost of attendance.
When shopping around for a student loan that fits your needs, keep in mind that it is advised that you only borrow what you think you will earn within your first year out of school. This could protect you against dire circumstances. Study the loan’s overall costs, its additional fees, and interest rates, and do not be afraid to ask any questions in order to secure your future.
For more information on student loans, you can check out ‘Student Loans - What You Need To Know’ or contact AnyCredit today!