A shorter loan term can help you save more money on interest charges during your repayment period but result in a larger monthly payment. Terms for private student loans can be as short as five years and as long as 20 years.
Like private student loan amounts, private student loan repayment terms vary by lender. However, student loans that are under an alternative payment plan offer terms from 10 to 25 years. For federal student loans under a standard repayment plan, the default loan term is 10 years. Your loan term is the amount of time you have to repay the loan in full. If you must take out loans to finance educational gaps, consider maximizing federal student loan limits before turning to a private student loan, as federal student loans come with additional benefits like income-driven repayment plans and standardized hardship programs. Regardless of whether you borrow federal or private student loans, borrow only the amount you need per school year after exhausting all grant and scholarship options.
Some lenders also impose lifetime borrowing limits, which may be up to $150,000 or more for some degrees. In general, private student loan lenders offer loan amounts that cover the gap between a school’s cost of attendance and any other financial aid a student receives. Each lender sets its own borrowing criteria, annual borrowing limits, interest rates and repayment terms. Loan amounts for private student loans can vary by lender.
0 kommentar(er)
