Since some larger banks have “checked out” of the student loan game, it seems that local credit union and local banks are looking to fill the void. Now for those of you looking to fund your college educations this may seem like great news, but before you sign on the dotted line, you better know what you’re getting into.

Just because smaller community banks and credit unions are now looking to offer private student loans, doesn’t make them much different from the private student loans offered by larger institutions… these are still private student loans. As with any private student loans, these should be considered LAST when it comes to financing your college education. If you are brand new to financing a college education, you need to get ALL the facts and information before locking into any financing medium. The first rule when it comes to student loans is federal student loans come first!

Once you have exhausted ALL of your other options for financing college, and you decide that a private student loan is right for you, you still must do some work before obtaining a private student loan. When choosing a private student loan, you need to investigate borrower benefits, interest rates and repayment terms.

Private student loans vary between lending institutions. Simply because an institution is local doesn’t mean it is necessarily the best deal for you. Be vigilant in your efforts of comparing private student loans and lenders, because not all private student loans are created equal.

TheStudentWhoGotScrewed:
is a 27 year old college graduate from the University of Wisconsin-Milwaukee, currently living in the Chicago, IL area. Read all of my posts by clicking here and read my profile by clicking here. Share your student loan experiences, stories and tips with me and other readers by dropping a comment!

Tags: applying for student loans / private student loans / student loans

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