Undergraduate student loans offered through Student Loan Scout provide undergraduates enrolled in a degree or certificate program with financing via a simple application process. To qualify for undergraduate student loans, you must generally be enrolled at least half time as determined by the school and meet age requirements for the particular state of residence.
The amounts of undergraduate student loans differ from lender to lender and range from $2,000 to $50,000, many with a variable interest rate based on the Prime Rate or LIBOR. The loan can usually be paid off over the term of 10 to 25 years, depending on the total amount borrowed.
To qualify for a private student loan, either the borrower or the co-borrower, must generally meet the following guidelines:
• Be of legal age to borrow in the state of residence
• Have qualifying credit, residence, and employment history
• Have income sufficient to make required payments
• If self-employed, be in business for at least two years
• Be a U.S. citizen or permanent resident and have resided in the U.S. for the previous two years (an international student requires a U.S. citizen or permanent resident as a co-borrower)
There are generally a variety of options regarding the repayment of private education loans:
1. Begin repaying your loan immediately, resulting in a lower interest rate and lower total loan cost.
2. Make fully amortized payments at the end of your grace period (usually six months after leaving school or reducing your attendance to below half-time).
3. Choose to make interest-only payments while you are in school, increasing the overall cost of your loan, but helping to manage your budget while in school.
When your loan is in repayment, you may often apply for a forbearance on your payments if you encounter financial hardship and are unable to repay the loan for a period of time. This will increase the cost of your student loan, but can assist you until you are able to resume making payments.