Private loans are the most generic form of financial aid because they are available to just about anyone with a decent credit record. Students apply for these loans through private loan providers, such as banks, credit unions, and independent businesses. Another name for these types of loans is Alternative Education Loans because they are not the first type of aid used by students. Since the Federal Government limits the amount of money a student can borrow to fund their education, private loans can be a real asset for students who can’t quite meet their tuition bills. Private loans, however, usually come with a higher interest rate than those of government or institutional loans. As a result, students end up paying more in the repayment process.
There are many different types of private loans designed to cater to a student’s level of study. Whether a student is in the undergraduate years or doing graduate studies, private loans will often fill in the gaps to finance an education. One type in particular is the GATES loan. This program is provided by a private non-profit group, which offers a loan in any amount to students with a minimum credit check. GATES loans also offer a very low interest rate for repayment. The loan program is offered through 4-year schools, but not all schools participate. Check with your college financial counselor for more details on the GATES loan.
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