Paying for College

Private student loan volume has grown consistently for more than 10 years. The College Board reports that private student loans have grown at a compound annual growth rate of more than 20% over the past decade. Of course, this growth is happening for a couple fundamental reasons. First, college costs have increased much faster than inflation. Second, federal assistance in the form of Stafford loans hasn’t kept up with the surge in tuition costs. As those trends have played out, families have had to rely on private student loans to help fill the gap between the real cost of college and the financial aid available from their college and the federal government.

In additional to private student loans, many families rely on home equity loans to help fund their children’s education. Unfortunately, many families are now struggling with falling home values and tightening credit in the home equity loan market. This makes the private student loan market even more important. And that’s why you’re likely to see advertisements for all kinds of private student loans including Astrive student loans, Chase student loans, CampusDoor student loans and others.

Private Student Loans Can Help Fill the Void

Most private student loans are designed specifically to help families pay for education so they generally come with in-school deferment provisions. At the same time, most private student loans allow families to apply at any time during the school year. This kind of flexibility - applying at any time and postponing all payment until after graduation - is a reason why private student loans like Astrive have grown so dramatically.

If you need additional financing to help pay for college costs like tuition, room and board, a computer and other school fees, first attempt to locate scholarships, then federal student loans and, finally, pursue private loans. Do your research before making any decisions and talk to everyone who can help including your parents and your financial aid office. Paying for college is complicated but there are a lot of resources to help so do your homework.