Private Loan Facts
Interest rates can vary greatly. They can be influenced by your credit history and are often variable (they change over time). If all other things are equal, a higher interest rate can cost you a lot of money.
Many lenders charge fees when you borrow money. When fees are high enough, they can offset the benefit of a low interest rate.
There are two time-sensitive questions you should ask.
- First, when do you have to start making payments? Some loans offer grace periods after graduation, during which no payments need to be made.
Second, how long do you have to repay the loan? A longer repayment period means lower payments, but can cost you more interest.
There may be options for temporarily suspending loan payments, such as forbearances or deferments. These options provide a safety net in case you someday have trouble making payments.