Why use private loans?
Although free money and low interest federal loans are obviously the best ways to pay for college, they often just aren’t enough. Not all students qualify for scholarships and grants; federal loans have annual borrowing limits, based on your year in school. Unless you or your parents have cash or savings, you will probably need to borrow money for college. Alternative loans are often a less expensive financial option than using credit cards or personal loans. Private loans generally allow you to defer most or all of the payments on the loan until about 6 months after you leave school. Simply put, alternative loans are built with a student in mind.
