Private K – 12 School Loans

Posted on June 16, 2018 by

Are you interested in applying for Private K – 12 School Loans? Receiving a good education is one of the most important factors in the development of a good foundation for a child’s future. With many of the states reporting a decline in the number of children passing federal education standards, it is apparent that the US education system is lacking the resources required to provide children with the required skills to prepare for the rigors of college & university.

Interested in applying for Private K – 12 School Loans?

There are also many other private school loans available – Below are some loans other than Private K – 12 School Loans:

• Private college student loans
• Private grad student loans
• Private professional student loans
• Private high School Loans

In a recent report by The Institute of Education Sciences (National Center for Education Statistics), it was determined that there will be an approximate increase in private school enrollment from 6.1 million (2014) to 6.8 million (2019).

The aggregate data shows that there are over 80,000 students moving to a private education every year. These numbers support the general belief that many Americans are choosing to entrust their children’s education to private schools over the public education system. Check out also this post about no-essay scholarships.

Regardless of the fact that receiving Private K – 12 School Loans – and then funding the high cost of a college education as well, may cost many medium to high income parents a significant portion of their savings and even possibly their own retirement, the data reports many parents are choosing the premium education which is provided from a private education.

Private Student and Home Equity Loans

With the price of tuition increasing for colleges across the world, it is becoming increasingly difficult to secure a continuing education for a child. Parents have had to resort to increasingly desperate measures just to keep up with the bills. However, there are ways in which families can leverage their resources in order to pay for a college education for the kids. This article will discuss two of the considered options for student financial aid: private student loans and home equity loans.

What are private student loans?
Private student loans are loans that are given through entities other than the government, such as a bank or credit union. These types of loans can either fully replace or supplement federal loans. If you plan on entering the medical world later and want information about nursing scholarships for your studies after finishing high school, go to this page.

The pros of private student loans
– Private student loans usually have deferral and forbearance options that can help a borrower extend a loan if necessary. Overall, there is usually much more flexibility in a private loan than in a public loan.
– Private loans are competitive. A student has the ability to compare loans and decide on the underwriter with the best terms. With public loans, the interest rates and terms are usually set in stone, leaving no room for the market to drive down prices.

The cons of private student loans
– Private loans that are made to students will usually have higher interest rates because most students do not have an established credit history. This can create a problem with payback options, as private underwriters usually do not exercise much flexibility in the terms after they have been set.
– Private student loans usually contain fees. Aside from the interest rate, private student loans will usually have a fixed cost of administration fees that can take a huge chunk out of the pockets of a borrower. Under certain circumstances, these fees can also rack up interest.
– Private loans must usually be secured. Although there are some options for unsecured private student loans, they are few and far between. Most private loans must be secured with a large asset, which can cause problems for families if payments are late.

What are home equity loans?
Home equity loans are loans for education that are secured against a piece of real estate. Often called a “second mortgage,” a home equity loan is usually an option for families that do not have a great deal of money saved for their children’s education. See also this post about how real estate might be the key to a solution.

The pros of home equity loans
– Because home equity loans are secured by a relatively safe asset, they usually come with much lower interest rates than private student loans. This can save a borrower tens of thousands of dollars over the life of a loan.
– Home equity loans are much less bureaucratic. Because a large asset such as real estate drastically reduces the risk to the underwriter, they are more than willing to reward you with a much lower fee for borrowing the money.

The cons of private student loans
– Having to securitize a loan with real estate is never easy psychologically. Payments must be made and terms must be as flexible as possible to ensure the safety of the security if a late payment must be made.
– The housing market can affect the loan as well. If the house suddenly loses equity in the market, homeowners can find themselves underwater on their mortgage, which can quickly become an untenable situation.