There are many ways to finance your college education. There are scholarships, grants, low-interest student loans, and private loans. Private loans are recommended as a last resort for financing. These types of loans are taken out either by your parents or by you. The private student loan can be applied for with a cosigner if you do not have established credit. It is also acceptable for your parents or grandparents to co-sign, as they may be more creditworthy. In many cases, a private student loan may qualify for special interest rates from certain lenders. With any loan, the smart thing to do is to borrow only what you will need for your education. One of the benefits of private student loans is that there are no financial restrictions. However, the loan interest rate is calculated based on your credit score or the cosigner's credit score. The higher the score, the better the interest rate. Some private loans are offered at special interest rates. In most cases, the student must be enrolled more than half the time at a four- or five-year college. The student must progress toward their degree. Salliemae programs offer loans starting at $1,500 per year of university study. The private student loan can be repaid without a prepayment penalty. In some cases, you can even have loans calculated for up to 30 years. The most important thing to remember when financing your college education is that the money will ultimately have to be repaid. This is why it is best to borrow only what you will need for your tuition and/or expenses. The last thing anyone needs is to go into debt right after college. With grants and scholarships, there is no debt. You have the option to consolidate your loans with...... middle of paper... as soon as you realize you are in financial difficulty. This is one of the times when a consolidation loan can just work. Again, it is advisable to speak with the school or financial institution that issued the student loans. There are ways to get out of default if you find yourself in it. Loans are not considered in default for 270 days. This is when loans may be referred to credit bureaus and collection agencies. You can speak with the lender and start making payment arrangements. When you make nine payments on time, you are no longer considered in default. This means that you make the payments yourself. This does not include payments made when your wages are garnished. When you make six timely payments, you can apply for Title IV Student Aid again. If you fail to meet your payments, you will never be eligible for this program again..