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Student Loans, Private Student Loan Frequently Asked Questions (FAQ)




Private Student Loans


At OneSimpleLoan, we're here to help you feel comfortable about student loans, especially about private student loans.  Please choose from the FAQ categories below to find answers to the most commonly-asked private student loan questions.


Financial Aid Basics FAQ

Private Student Loans FAQ


Here are the most commonly-asked questions about Private student loans.

If you still have questions that are not answered by this private loan FAQ, please don't hesitate to email or call OneSimpleLoan toll-free at 1-877-663-7467 for a free consultation, especially before you borrow with anyone else! We're here to help you get the best that student loan offers, including the best rates and the best service.

Can I qualify for a private student loan even if I don't qualify for federal financial aid?
Can I apply for a private student loan even if I didn't complete the Free Application for Federal Student Aid (FAFSA)?
Do I need to talk to my school about an alternative student loan?
Is there a minimum loan amount?
Is there a maximum loan amount?
Do I need a co-signer if I don't have good credit?
If I apply for a private student loan with a co-signer, can I assume sole responsibility for the loan at a later date?
How is the interest determined on my loan?
Are there any fees associated with a Private Loan through OneSimpleLoan?
How long does it take to get the loan?
How do I apply for a private loan?
Can I apply for a private student loan now and use the funds for education-related expenses from an academic period in the past?
Can I use a private student loan for items other than tuition?
If I don't finish college, or if I'm unsatisfied with my education, do I need to repay my student loan?
What happens if I don't repay my student loan?
Are loan payments required while the student is in school?
Are interest payments required during deferment?
How much will my monthly payments be?
How long do I get to repay my loan(s)?
Are there any prepayment penalties?
Can I have payments deducted automatically from my bank account?
What are my options if I can't afford my minimum monthly payment?
I need student loans to go to school, yet I have bad credit and I lack a qualified cosigner. What can I do to get my student loans?
How can I find out what my credit rating is, and how to improve it?
What is a lender code, and does OneSimpleLoan have one?




 

Can I qualify for a private student loan even if I don't qualify for federal financial aid?
Possibly. Your eligibility for a private student loan is based on your credit (or your co-signer's credit, if applicable). In addition, your school does have to be on our lender partner's eligible school list.


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Can I apply for a private student loan even if I didn't complete the Free Application for Federal Student Aid (FAFSA)?
Yes. The FAFSA needs to be completed in order to receive federal loans. A private student loan through OneSimpleLoan is credit-based and does not require a completed FAFSA. However, we encourage all students to exhaust their federal loans options before applying for private education loans.


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Do I need to talk to my school about an alternative student loan?
No. However, your financial aid advisor can advise you about the options for funding your education and estimated cost of attendance.


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Is there a minimum loan amount?
Yes. The minimum is currently $1,500 per year. Please check back with us often to see if our minimums change.


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Is there a maximum loan amount?
The maximum amount you can borrow each school term is the total cost of your education (including tuition, fees, and any education-related expense) minus any federal financial aid you accepted. There is a yearly loan limit of $40,000. You can receive from $1500 to $40,000 per year based on the cost of attendance of your school, your creditworthiness, and the type of loan you need. There is a cumulative (lifetime) maximum of $130,000.


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Do I need a co-signer if I don't have good credit?
Your credit may not be as bad as you think, so don't be discouraged from applying. However, most students may need an eligible U.S. cosigner to qualify.

Creditworthy students can apply for a private student loan without a cosigner if they meet all of these requirements:

  1. Employment history of at least 2 years and maintain employment with the same employer or in the same field while you are attending school

  2. Have proof of current income

  3. Have a satisfactory credit history of at least 27 months

  4. Have resided at your current and immediately preceding addresses for at least 12 months

  5. Be a US citizen or permanent resident and have resided in the US for the previous 2 years

Students that don't meet these requirements are encouraged to apply with an eligible U.S. cosigner. Including a creditworthy cosigner may also reduce the interest rate and the origination fee, even for students who qualify on their own.



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If I apply for a private student loan with a co-signer, can I assume sole responsibility for the loan at a later date?
Yes. The primary borrower can release the co-signer from responsibility for the loan after a specified number of consecutive on-time payments, ranging from 36 months to 48 months, depending upon the lender. The primary borrower must meet the credit requirements in order to release the cosigner.


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How is the interest determined on my loan?
Rates and fees are determined based on the borrower's credit history at the time of application and the repayment option chosen. Interest rates are based on the prime rate or the London Interbank Offered Rate (LIBOR), plus a margin based on your credit history (and/or your cosigner's credit history) and the loan type. The interest rate changes monthly based on the one-month prime rate or LIBOR published in the Wall Street Journal on the first business day of the preceding month.


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Are there any fees associated with a Private Loan through OneSimpleLoan?
There may be an origination fee ranging from 0% to 10.5%, which is determined by loan type, repayment option, borrowers credit history, and whether a cosigner is included. There is no repayment fee. Fees are determined by the borrower's credit history at the time of application and by the repayment option chosen.


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How long does it take to get the loan?
This depends on various factors, including the method you use to submit your application. Once all required documentation is submitted and you are approved, the funds will be disbursed promptly. Once your qualified written application is received and verified (usually within 1 business day) your funds can be sent within 2 business days.


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How do I apply for a private loan?
It's easy! Apply for a private student loan online or call our toll-free number at 1-877-663-7467 to apply for your Private Student Loan through OneSimpleLoan.


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Can I apply for a private student loan now and use the funds for education-related expenses from an academic period in the past?
Yes. Students do not need to be currently enrolled to borrow for a previous term if there is still an outstanding balance. A current school bill dated within the last 60 days reflecting the past-due balance is necessary. Loans are limited to the amount owed and repayment begins immediately.


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Can I use a private student loan for items other than tuition?
Yes. The loan can be used for any education-related expenses, including, but not limited to, tuition, fees, books, a computer, supplies, room and board, and transportation.


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If I don't finish college, or if I'm unsatisfied with my education, do I need to repay my student loan?
Yes. Your student loans are obligations that need to be repaid. You are responsible for all amounts due under your promissory note.


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What happens if I don't repay my student loan?
If you do not repay your student loan according to the terms disclosed on your promissory note, you may eventually be in default on the loan. Consequences may include:

  • An adverse effect on your credit rating that may limit your ability to borrow for a car, home or credit card.

  • A requirement to immediately repay the entire amount of the loan, including interest.

  • Withholding of your wages to pay your debt.

  • If there is a co-signer, they will suffer the same negative consequences.


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    Are loan payments required while the student is in school?
    No. The borrower can choose to defer all payments while the student is enrolled at least half-time.


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    Are interest payments required during deferment?
    No. The borrower may choose to defer interest payments, as well as principal payments, while the student is in school. However, unpaid accrued interest is capitalized at repayment and increases the repayment amount. To reduce the overall cost of the loan, borrowers should consider making principal and interest payments while the student is in school.


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    How much will my monthly payments be?
    Your monthly payment amount will depend on how much you borrow and what repayment option you select.


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    How long do I get to repay my loan(s)?
    The maximum repayment period for a private student loan is 300 months (based on balance). Any periods of deferment and/or forbearance do not count toward the repayment period.


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    Are there any prepayment penalties?
    No. You can pay off all or part of your loan at anytime without penalty.


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    Can I have payments deducted automatically from my bank account?
    Yes. If you elect to have your loan payments automatically deducted from your bank account you can receive a 0.25% interest rate discount.


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    What are my options if I can't afford my minimum monthly payment?
    During the loan repayment period, a borrower may request forbearance. Forbearance is a temporary postponement or reduction of loan payments, for a maximum of six months, based on financial hardship. Forbearance is granted at the lender's discretion. The lender may grant a forbearance request no more than once per calendar year and no more than twice during the life of the loan.


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    I need student loans to go to school, yet I have bad credit and I lack a qualified cosigner. What can I do to get my student loans?
    If you're looking for additional student loans to fund your education, whether it's a Stafford, PLUS or private student loan, don't worry! OneSimpleLoan is here to help you. After exploring scholarship options, be sure to apply for Federal student loans. Make sure you know your credit score, and review your credit history to make sure it's accurate. If you still need additional help, we have created an alliance with InCharge.org, a highly-reputable non-profit credit counseling company, to help individuals improve their credit rating and better manage their debt, even including credit card debt. There's absolutely no charge to speak with a credit counselor! Just call toll-free 866-729-0059 (lines are open 7 days a week), or click here to visit their debt counseling site. If you have bad credit and need student loans, call now. There's nothing to lose except your debt!


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    How can I find out what my credit rating is, and how to improve it?
    OneSimpleLoan is pleased to offer a special program where you can not only learn what your FICO® credit score is, but also receive your credit reports, a credit report analysis, alerts when your credit profile changes and identity theft protection. Be sure to visit https://www.onesimpleloan.com/CheckMyCredit to get your credit score now.

    Not sure if you qualify for student loan consolidation? Need additional student loans? Contact us by email or by phone toll-free at 1-877-663-7467 and we'll be happy to help you with both financial aid services!


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    What is a lender code, and does OneSimpleLoan have one?
    A Lender Code is a 6-digit identification number assigned by the US Department of Education to lenders that participate in Title IV higher education loan programs. If you're applying for a Stafford or PLUS loan, financial aid offices are required to have the lender code in order to process the loan with the guarantor and lender. OneSimpleLoan's lender code is 834205.


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