Non Certified Private Student Loans
What Are Private Student Loans?
Private student loans are loan programs offered to students enrolled in higher education by private lenders. These could include banks, financial intermediaries, and/or a private contact or company willing to pay for the education of the applicant for the time he/she is enrolled in the institute and can payback once they have graduated. Private student loans are of two types: certified private student loans and non certified private student loans.
What Are Certified And Non Certified Private Student Loans?
Certified private student loans are those private loans which have been approved by the financial aid office of the respective institute of the applicant and are in the knowledge of the institute, whereas non certified private student loans are those private loans which have not been approved by the institute and are in fact not even in the knowledge of the office of financial aid of the respective institute. Applicants mostly go for non certified private student loans if they do not qualify for federal financial aid.
Are There Any Prerequisites For Non Certified Private Student Loans?
Students opting for the non certified private student loans are responsible for the legal terms and conditions of the contract signed between the lender and the borrower on their own. There is no involvement with the institute; therefore, the institute will not be of assistance regarding financial aid advice. Furthermore, in order to qualify for a non certified private student loan, an applicant must have a cosigner and/or a good credit history to be able to get the loan. Non certified private student loans often have stringent terms and conditions which hold legal value and the applicant can be taken to the court if he/she fails to make timely payments.
What Are The Advantages of Getting Non Certified Private Student Loans?
Non certified private student loans are withdrawn without the knowledge of the institute therefore the applicant does not need a certificate or authorization from the institute. These loans offer one of the highest borrowing limits and can be directly obtained from the lender, therefore take less time in approval and sanctioning of the loan.