Out Of Pocket? Key Facts You Must Know about US Private Student Loan Lenders (Infographic)

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Students not eligible for federal loan programs for a variety of reasons, often turn their heads towards private student loans providers.

The available statistical data suggests that private loans are rising in popularity due to the market-driven interest rates. In 2018, the total amount of the US student loan debt is over $1.48 trillion.

So, how much of this sum comes from private borrowers?

Key Facts On the US Private Student Loans

Here’s the essential information to gain a better understanding of the problem in 2018:

  • national private student loan debt is roughly $11.6 billion.
  • number of private student loan borrowers is 1.37 million (~6%).
  • since 2011, the total outstanding debt has increased by 38.1%.
  • graduate borrowers account for 40% of the overall student loan debt, which makes $563 billion.
  • 61.8% of graduate student loan debt is distributed among 6 loan programs.

  • the highest individual loan debt per graduate equals $27,167 (New Hampshire).
  • the lowest individual loan debt per graduate equals $7,545 (Utah).

Private Lenders: To Trust or Not to Trust?

The market is saturated with lenders claiming they provide the best private student loans.

However, it takes time and effort to find a private lender one can entrust with a long-term financial obligation.

The most confusing part is figuring out the payment amounts based on variable interest rates. People with little loan experience risk being caught unaware in the event of indiscretion.

Loan providers like ACS Student Loans (Conduent) service federal, private and campus loan programs. The list of serviced federal loans under the FFELP includes Stafford (GSL) Loans, PLUS Loans, Consolidation Loans, and SLS Loans (Supplemental Student Loans).

Conduent has a Specialized Servicing Group to service a number of private loan programs. Conduent’ Campus Based Division supports the student loan and financial administrative needs of the school – managed programs. To learn more about Conduent financial support, visit their website.

Below you’ll find the list of popular student loan lenders:

*To view the loan rates, choose a website from the list below:

Private Student Loans: Pros vs Cons

Most borrowers are repelled by the interest rates higher than federal loan rates. However, people aren’t fully aware of all pros and cons of private student loan options.

See the chart below to learn all the advantages and disadvantages of turning to private money lenders:

Check out US private student loans infographic: 

Private-Student-infographic

Bottom Line

Unlike federal student loan programs, private loans have a range of limitations and downsides. Still, resorting to a private lender is an option to cover the funding gap. One of the ways to minimize the overall debt is putting a limit on a total borrowing.

For instance, one can set the total borrowing to one year’s anticipated salary after graduation. Another option is paying the interest while still at school. Keep in mind, relying on private loans as the only way of paying for education is not the best decision.

Consider applying for scholarships to reduce the need for external funding.

See also: 

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Out Of Pocket? Key Facts You Must Know about US Private Student Loan Lenders
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Out Of Pocket? Key Facts You Must Know about US Private Student Loan Lenders
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Students not eligible for federal loan programs for a variety of reasons, often turn their heads towards private student loans providers.
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