Lenders of Private Student Loans Offering Better Terms
Financial institutions are once again offering students and parents favorable borrowing terms and interest rates on their private student loans. As the financial market rebounds this year, financial institutions are able to offer better borrowing incentives. Kevin Walker, Co-founder and CEO of Simple Tuition, Inc asserts, “This is good news for borrowers, who are finding lower rates, fewer fees and expanded borrower benefits.”
“Financial institutions are once again offering students and parents favorable borrowing terms and interest rates on their private student loans.”
Simple Tuition compiled the latest data on national, regional, and local private student loans among 11 of the top lenders.
- Lower rates among the top five lenders, including a drop of as much as two percentage points at one of the largest lenders.
- Seven lenders not charging origination fees.
- The return of—and increases in—borrower benefits, including discounts for automated payments.
- Shorter repayment term options, potentially saving many thousands of dollars.
In addition, the nation’s leading savings, planning and education loan company, Sallie Mae has a new model of private education loans that encourages making interest payments while in school thus saving students thousands. This new model encourages responsible borrowing families to pay little now and save a lot later.
The financial crisis has negatively affected the borrowing of private student loans for the past two years. This year these loans have increased in popularity due to rising tuition costs and limited free financial aid in the form of grants, scholarships, and federal student loans.