When it comes to funding college careers, more and more students are finding themselves in need of both federal and private student loans. While filling out a FAFSA (Free Application for Federal Student Aid) is still essential to getting the majority of your financial aid, it is no longer the sole step in funding your college career. That’s why more and more students are turning to lenders like WSFS Bank for private student loans.
While we have seen record numbers of unemployment and underemployment over the past seven years since the housing bubble burst, we’ve also seen incredible increases in tuition and fees for schools across the country. And what’s happened to the caps on federal student loan allowances? They’ve remained exactly where they were with no appreciable increase of any kind.
Fortunately, as the gap has increased between the money students are awarded by the federal government and the money necessary to pay for college, the private student loan industry has responded. Seeing an increase in demand, more lenders have focused their attentions on creating private student loan programs.
At the same time, they’ve seen that the competition is fierce and that high interest rates and inflexible policies won’t entice students to borrow from them. WSFS Bank Private Student Loan doesn’t particularly stand out as one of the very best private lenders, but their policies can give you an idea of what to expect from your private student loan experience.
New Private Student Loan Benefits
Traditionally, private lenders only offered variable rates, and they did not offer a lot of different terms or loan types. Now you can choose between variable and fixed rate loans, depending on your needs. If you would rather take a risk on the market and start with a very low rate (like WSFS Bank’s lowest rate of 4%), you can choose a variable rate loan. If you would rather have the stability of a fixed rate plan, with WSFS Bank Private Student Loan, you may still be able to get a rate as low as 6%.
Which option you choose is entirely up to you, but it’s wise to consider how long you plan on taking to pay the loan back, as well as other terms of the loan. Variable rates are usually best for shorter-term loans. Over a shorter period of time the market has less of a chance to fluctuate and affect your interest rate.
If you’re taking longer to pay your loan back so that you can make smaller, more affordable payments from month to month, you may be enticed by the lower interest rates on variable rate loans. However, if you think about the time over which you’ll be paying and how much chance the market has to change, you might go with the more secure option of a fixed rate loan.
Speaking of shorter and longer term loans, WSFS Bank Private Student Loan also offers up to a 15-year plan for paying your loan back. Most federal loans range from 10-25 years, and most private loans range from 10-20 years as their longest option with the lowest payments.
If you go with a WSFS Bank private student loan, you’ll also be allowed to approach the loan aggressively and pay it back faster with increased frequency of payments or increased payment amounts. Some private lenders still have prepayment fees to ensure that they make money off of you, with or without the interest on your loan, but this is quickly disappearing as more and more students choose options that let them pay as much as they want.
Qualifying for a WSFS Bank Private Student Loan
To qualify for a loan with a good interest rate (whether fixed or variable), you will most likely need to find a cosigner, or you’ll have to prove that you make a minimum of $1200 in income per month. Be aware that your cosigner will need to stay on the loan for a minimum of 48 months of consistent, regular, in-full payments. Some institutions allow cosigner release after a single year of consistent payments, but 36-48 months is standard for most medium to large sized banks and lenders.
If you have existing loans and want to refinance, you can negotiate terms and potentially lower both your interest rate and your monthly payments if you have $150,000 of debt or less. This is a good option for people who’ve financed under graduate and graduate school with student loans and have a sizable amount of debt to pay off.
So, is a WSFS Bank private student loan right for you? Take a look at their benefits and terms, and you might find that they fit you well, or you might find that you should go with a credit union or other lender to suit your needs best. These loans are great for borrowers who have cosigners with great credit who don’t mind staying connected to a loan for four or more years.
Compare and Apply for Student Loans TuitionChart.com
TuitionChart.com works hand-in-hand with the best, most trusted names in private student lending to help students and their families find the money they need for college. Through use of comparison tools and loan searches, TuitionChart provides over 20 different loan options for students. TuitionChart.com is designed to help students and their families wend their way through the maze of financial aid information.