When you need student loans to help pay for your education, there are many options available. While it’s best to start with federal student loans, there are limits to how much you can borrow each year and in total; If you’ve reached your maximum allowance, you can turn to private student loans to help bridge the gap. Many national banks offer student loans with low interest rates and customizable terms. Here’s where to start your search.
Can I get a student loan from a bank?
There are four different sources of student loans: the federal government, banks, credit unions, and online lenders. If you are applying for a private loan, it is a good idea to shop around and compare the offers from various types of lenders.
However, some banks offering student loans offer a loyalty discount to existing customers, which can help your bank gain an advantage over other lenders.
Do banks offer student loans without a co-signer?
It can be difficult for students to get approved for a private student loan without a co-signer, especially if you have little or no income and a credit history.
Banks are no different from other lenders in this regard, so if you are considering applying for a private student loan, consider having a parent co-sign the loan application to improve your chances of being approved and receiving a loan. reasonable interest rate. .
That said, if you have a credit history in your name, you can probably find a bank that will accept your loan application without a co-signer. This is especially true for graduate student loans.
The best banks for student loans
It is always a good idea to shop around and compare loan offers from several lenders before submitting an application. This list below can help you narrow down your list of options.
Citizens Bank only has branches in 11 states, but it offers private student loans nationwide. The bank offers loans to undergraduate and graduate students, as well as parents who hope to help their child complete school. Loan terms vary from five to 15 years for students and five to 10 years for parents.
The lender has both variable and fixed interest rates and offers a 0.25% loyalty discount on the interest rate to existing customers – which includes your co-signer if you have one – with a checking account, a savings account, a money market account, a certificate of deposit, a car. loan, home equity loan, home equity line of credit, mortgage, credit card account or other student loan held by Citizens Bank. The bank also offers a 0.25% discount on the interest rate for automatic payments.
Citizens Bank also offers the option of obtaining multi-year approval. With this feature, you are thoroughly investigated once for several years of student loan needs. When you request future disbursements, you will only go through a smooth credit check, so you don’t have to apply every year.
Discover is an online bank that does not have a physical branch. The bank offers a wide variety of private student loans, including undergraduate loans, graduate loans, MBA loans, health professions loans, legal loans, residence loans, student exam loans. bar and loans to parents. The loan term is 15 years for undergraduate loans and 20 years for graduate loans.
The lender offers variable and fixed interest rates, with the option of getting two discounts on your rate. The first is a 0.35% discount if you choose to only pay interest while you’re in school and during grace periods. The second is a 0.25% discount you’ll get if you set up automatic payments from a checking or savings account.
To sweeten the pot even more, Discover is offering cash rewards for good grades. You can get a reward of 1% of your loan balance if your GPA for the term covered by the loan is 3.0 or more. And if you’re an incoming freshman, you can get a 1% cash reward on your first loan from the bank if your high school GPA was 3.0 or higher.
Student loan financing
Education Loan Finance, or ELFI, is the online student loans division of SouthEast Bank, located in Tennessee. The lender offers loans to undergraduates, graduate students and parents. Repayment terms vary from five to 15 years for students and five to 10 years for parents.
What sets ELFI apart from other lenders is that you will have a personal loan advisor who will help you through the process. However, ELFI doesn’t offer an automatic payment discount like other banks, claiming that it doesn’t force you to do anything more to get its best rates.
PNC Bank, which is based in Pennsylvania, offers private student loans to undergraduate and graduate students. It also offers specialized loans for health and medical professions, health professions residency and bar studies.
The lender offers fixed and variable interest rates. Like some other banks, PNC offers a discount on the interest rate, but this is double the standard 0.5% discount. PNC Bank private student loan repayment terms range from five to 15 years.
One of the reasons PNC is unique is that it offers a $ 2,000 scholarship twice a year, and you don’t even need to have a PNC student loan to qualify. Once you register and meet the eligibility requirements, you will be eligible for two draws within the next 12 months.
Sallie Mae is another online bank that does not have physical branches. The bank offers undergraduate loans, graduate loans, job training loans, and parent loans.
Graduate loan options are divided into MBA loans, medical school loans, medical residency loans, dental school loans, dental residency loans, health professions loans, law school loans, and student loans. studies at the bar. Repayment terms vary from five to 20 years.
The bank offers both fixed and variable interest rates, with the option to get a 0.25% discount if you set up automatic payments. Sallie Mae can be a great choice for part-time students because, unlike most student loan companies, she doesn’t require you to attend school at least part-time to be approved.
Student loans from banks vs. online lenders
For the most part, banks offering student loans are relatively similar to online lenders. Although each bank has its own characteristics, there is not a huge difference between the two types of lenders.
That said, some of the best student loan banks do offer loyalty discounts to their existing customers. This can be useful if you or your co-signer has an eligible account with a bank that offers private student loans. A bank might also be a good option if you prefer in-person customer support and there is a branch near you.
Before applying for a loan, it’s essential that you take the time to compare interest rates, repayment terms, and other features with multiple lenders to make sure you’re getting the best deal for you.