What are private student loans?

Private student loans, such as the CompleteEd loan, usually supplement other college funding. Keep in mind that private student loans are not subsidized. They offer variable APRs that are generally higher than Federal need-based loans. Private student loans are available through private institutions and some colleges.

Which are better, private student loans or Federal loans?

Since Federal loans generally offer lower fixed APRs, and in some cases, pay some of the interest, always use Federal loans first. Private student loans are often used to cover the shortfall between the cost of education and the amount of Federal aid a student receives.

How much will a CompleteEd private student loan cover

CompleteEd loans cover up to 100% of tuition, fees, books, room and board, less any personal contributions, scholarships, grants and financial aid received. The maximum is $25,000 per academic year. Simply apply for the amount indicated as “unmet need” in school award letters.

What is the maximum private student loan amount?

It varies depending on the lender. CompleteEd private student loans can provide up to $25,000 per academic year, less any personal contribution and any private and Federal aid or loans received. The minimum loan amount is $2,500 per academic year. The lifetime loan limit is $125,000.

What's the difference between certified and non-certified private student loans?

Certified private student loan amounts are determined by the “unmet need” amount indicated in college award letters. Loan money is paid directly to schools, which are required to confirm enrollment of student borrowers. As a result, these loans usually offer lower variable APRs. The loan money covers up to 100% of tuition, fees, books, room and board. Any money left over after paying these costs is paid to the student.

Non-certified private student loans are awarded based on credit history and an institution’s lending limits. As a result, they usually offer higher variable APRs. The loan money is paid directly to the student borrower and may be used to pay a variety of college-related expenses.

What is the principal portion of a private student loan?

Principal is the amount borrowed, excluding interest and fees.

What's the difference between the interest rate and APR?

The interest rate is the cost of borrowing money. An APR (Annual Percentage Rate) is the effective interest rate with finance charges and fees included.

Does interest accrue during school?

Generally, private student loans begin charging interest as soon as the funds are disbursed. While usually not required, payments may be made while in school and during the grace period. Any unpaid interest will be rolled into the principal when repayment begins.

What fees are involved with a private student loan?

It depends on the loan. Some charge origination fees, repayment fees, and/or late payment fees.

What part of a private student loan is tax deductible?

Generally, money paid as interest is tax deductible for both private and Federal student loans for borrowers who meet income guidelines. We recommend talking to a tax advisor to determine eligibility.

Besides tuition, fees, books and room and board, what expenses should a college budget cover?

It should include the basics-computer/laptop, Internet access, software, phone service, special supplies or equipment for classes, student and facilities fees, transportation (at school and between school and home), dorm/apartment furnishings and social activities (dances, movies, sports, snacks, etc.).

What are the requirements to apply for a private student loan?

Private student loans are available only to student borrowers. The student or cosigner must have a good credit standing, a source of income, have citizenship in the United States and meet the minimum age required by the state. Other requirements depend on the type of loan.

Do private student loans require cosigners?

Sometimes. CompleteEd loans require a cosigner. Keep in mind that having a cosigner may lower the APR.

Does a school get involved with a private student loan?

Sometimes. Schools get involved with certified student loans, like those from CompleteEd, by confirming enrollment and eligibility of student borrowers. Schools also certify the eligible loan amount based on any personal contributions, as well as any scholarships, grants, and Federal aid received. This amount is indicated as the “unmet need” in school award letters. Loan money is paid directly to schools, which may pay any remaining funds to the student.

Can I make payments online?

Yes. Great Lakes processes your payments, and you can make payments through their Web site.

Is prepayment allowed on CompleteEd private student loans?

Yes, there are no prepayment penalties for paying off this loan early.

When is the first loan payment due on a student loan?

With most student loans, including CompleteEd loans, the first payment typically will not be due until six months after graduation or enrollment status falls below half-time. However, interest begins accruing immediately on disbursement, similar to the unsubsidized Stafford and PLUS loans.

Is CompleteEd a variable interest rate loan? If so, how does it work?

Yes. CompleteEd uses variable rates on our private student loans, and they are adjusted quarterly. The interest rate is based on the current prime rate plus a margin. Interest begins accruing the day the loan funds are paid out. For more information on interest rates > click here.

Can student loan payments be postponed?

Loan providers have different policies. At times, CompleteEd allows postponement of payments for extenuating circumstances. For more information, contact our loan service provider, Great Lakes, at mygreatlakes.org

What is the minimum monthly payment amount for a student loan?

The minimum amount is determined by the amount of principal borrowed, plus the interest accrued. The minimum monthly payment for a CompleteEd loan is $50, which is typical. Other student loans may require a larger minimum monthly payment.

Is there a grace period before beginning repayment?

Yes. Many private student loans and some Federal loans provide a six-month grace period after graduation or falling below half-time enrollment status. In cases where interest begins accruing at the time the loan is disbursed, there is an option to make payments at any time. Note that grace periods vary for different types of Federal loans.

Is there any way to save money while repaying the loan?

Reduce the total amount of interest paid by making interest payments while in school. Contact your lender for the monthly interest accrual amount. Get an extra .25% APR discount with CompleteEd by signing up for automatic payments (ACH) during repayment. *

Who is ultimately responsible for a loan?

It depends on the type of loan. With Federal Stafford and Grad PLUS loans, the student is responsible because the loans are made in the student's name. With Parent PLUS loans, the loan is in the parent's name, making them responsible for the loan. For private student loans, like CompleteEd, both the student and cosigner are responsible in most cases. Cosigners can be released of some loans after meeting certain requirements..

What is a credit union?

A credit union is a cooperative financial institution, owned and controlled by the people who use its services. These people are members. Credit unions serve groups that share something in common, such as where they work, live or worship. Credit unions are not-for-profit, and exist to provide a safe, convenient place for members to save money and get loans at reasonable rates.

Credit unions, like other financial institutions, are closely regulated. And they operate in a very prudent manner. The National Credit Union Share Insurance Fund (NCUSIF), administered by the National Credit Union Administration, an agency of the Federal government, insures deposits of credit union members at more than 9,000 Federal and state-chartered credit unions nationwide. Deposits are insured up to $250,000, the same as a bank.

What makes a credit union different from a bank or savings and loan?

Like credit unions, banks and savings and loans accept deposits and make loans. They differ in that most banks and savings and loans are "for profit" institutions owned by groups of stockholders whose interests include earning a healthy return on their investments. Credit unions are "not for profit" institutions owned by their members.

What are the benefits of joining a credit union?

Credit unions are non-profit organizations, so their members generally earn higher interest on money invested, get lower APRs on loans and pay fewer or lower fees than banks. They can get a range of financial services including checking accounts, debit cards, savings accounts, credit cards, auto loans, mortgages, CompleteEd private student loans and more.

Who's eligible to join a credit union?

There's a credit union for just about everyone. Anyone who has an affiliation that a credit union represents is eligible to join. Affiliations include belonging to a certain organization, school, religious group, profession or living in a specific geographic area. Go to the Credit Union Finder to find a fit.