Are Private Student Loans Worth It? How to Decide | Student Loans and Advice
Paying for college can seem like an insurmountable feat for students and their families amid the rising cost of a university education – especially for those who can't afford to pay out-of-pocket after maxing out federal student loans, grants and scholarships. When federal aid comes up short, private student loans can be one way to bridge the college financing gap.While private loans can be a legitimate funding option after federal aid has dried up, borrowers should know the risks of taking on privately held college debt. Private student loans aren't eligible for federal protections like income-driven repayment, administrative forbearance and certain student debt forgiveness programs. Plus, private lenders determine eligibility and interest rates based in part on the applicant's credit sc...
