When paying for private college, there are many important considerations you will want to keep in mind. First and foremost, the cost of tuition should be taken into account as this will be the single largest expense. The cost of attendance will also include: room and board, textbooks, supplies, meals and other education-related expenses.
The cost of private college is typically significantly higher than the cost of public college. On average, students attending private four-year universities pay more than twice as much tuition and fees as those enrolled at public universities. This average difference between the two types of colleges amounts to approximately $25,000 per year more for private schools---however, depending on the school’s you’re interested in, that difference can be quite different.
Overall, the cost of higher education has been steadily increasing over the last decade. These increased costs have had a significant negative impact on students and families across the country, with many struggling to afford college tuition costs. This trend is expected to continue with experts predicting that by 2025 public college tuition will be almost twice as expensive as it was in 2010 while private college tuition will be roughly three times what it was over a decade ago. This means that hundreds of thousands of students and families may not be able to afford a college education unless considerable reforms are implemented.
Sticker Price vs. Net Price
We are referring here to the “sticker price” of college – those costs published for all to see. The net price of a private college you might actually pay can often be much lower than the cost that is listed. This is because many private colleges offer financial aid packages to their students, which can significantly reduce the amount of tuition and fees due. For example, if you receive a combination of grants and scholarships you may pay only a fraction of what is listed as the average college cost. The Urban Institute even estimates that a full-time student at a public or private nonprofit university pays 40-45% of the school’s sticker price.
Strategies you will want to consider for covering the costs of paying for private school will include seeking out federal aid, looking for scholarships, potentially participating in dual enrollment and finally borrowing student loans. Planning ahead will be your best strategy and knowing what to plan for will certainly help with that process.
Fill out the FAFSA® (the Free Application for Federal Student Aid)
Every year, all college students are faced with the challenge of figuring out how they are going to pay for college. The Free Application for Federal Student Aid (FAFSA®) is important to help you meet this challenge. By completing the FAFSA, you are able to take advantage of federal and state aid programs. The FAFSA is the first step you must take, if you are looking to apply for federal grants and/or loans that can be used to pay for your college tuition and fees. By completing the FAFSA,
The FAFSA is also the first step in applying for any type of federal student loan, such as Direct or PLUS loans. Applying for these loans can be a lengthy process, so by filling out the form early, you can ensure you don't miss out on potential funding sources. There may be some schools that will require you to fill out the FAFSA before they will consider you for merit-based scholarships or other forms of aid.
The FAFSA isn't just important when it comes to getting financial aid - it's also helpful for you to understand how much money you will need to fund your college education. Through the use of online calculators available through the U.S. Department of Education, you will be able to estimate how much money you should expect to receive in federal grants (such as the Pell Grant) and loans each year so you can budget accordingly.
Seek out Scholarships
Another strategy to help cover private school college tuition is to seek out private scholarships by proactively searching and applying for them. Start by researching online and networking with organizations that may provide scholarship opportunities. You might also want to look for private foundations, corporations, sports teams, religious organizations and local businesses that could offer scholarships. Many of these entities have specific criteria for eligibility, so make sure you read the requirements carefully before applying.
Another great resource is to contact your guidance counselor or college financial aid office for scholarship information that might be available through the college or university. It’s important that you make sure you thoroughly research each scholarship opportunity before applying to make the best use of your time. Read all the application materials carefully and understand all the application requirements and deadlines. Ensure you meet all criteria and submit your applications promptly with proofread documents that demonstrate why you are an excellent candidate for the award. Taking these steps will give you a better chance at success when applying for private scholarships.
Consider Dual Enrollment at a Community College while in High School
Participating in dual enrollment at a local community college while also finishing high school can be a great way to help you save money for private college. Dual enrollment allows you to earn college credit while still in high school, meaning you can start your post-secondary education earlier and potentially graduate sooner. This could help to reduce the total expense of the private college, as some credits taken at the community college may be transferable towards your degree. Community colleges might even off offer you a reduced tuition rate if you are a dual enrollment student, meaning that additional savings can be realized.
One of the main tradeoffs when participating in dual enrollment while also finishing high school is having to juggle two schedules. High school classes often take priority over college classes when it comes to scheduling, meaning that some college classes may have to be missed or dropped. Also, keep in mind, that when you are enrolled in both a high school and a college courses, you may not have time for extra-curricular activities or part-time jobs.
Another potential tradeoff to consider is the workload associated with taking courses at both levels. College courses are typically more rigorous and demanding than high school courses, so you will have to balance your workload carefully in order to succeed in both environments. Be careful that you are not spending too much time on your college coursework, that you don’t have enough time for studying for your high school courses as well. Graduating high school and receiving that diploma is key to getting accepted into the private college.
It is also important to consider financial considerations when considering dual enrollment. Even at a potentially discounted rate, you will need to pay out of pocket for your community college tuition since many schools do not offer financial aid for dual-enrolled students and parents might find it difficult to shoulder the expense of tuition plus textbooks and other materials needed for both high school and college classes.
One final and very important consideration is to ensure you will be able to transfer the credits earned through dual enrollment to the college you plan to attend. Depending on the policies of individual universities or colleges, credit earned while still in high school may not transfer fully or at all when enrolling as an undergraduate. This could mean that some or all of the work done in dual enrollment could go unrecognized and will need to be redone in order to gain an undergraduate degree from another institution. Doing your homework in advance to make sure your efforts will be recognized is of the most importance.
Borrow if it makes Sense
You should borrow money to pay for college only when absolutely necessary, and when you are certain that you will be able to make payments on the loan upon graduation. Taking out a loan should always be undertaken thoughtfully and with an understanding of the potential consequences of being unable to pay it off. Make sure you consider factors such as your future income potential, the interest rate on the loan, possible deferment or forbearance options, and available scholarship opportunities.
Also think about potential alternatives such as working part time while attending school or taking fewer courses each semester to decrease overall tuition costs. Thoroughly research all available funding sources such as grants, or installment payment plans provided by your school. Seek out advice from a financial aid counselor who can provide additional guidance in making an informed decision about whether borrowing money is the best option for paying private college expenses.
Compare Featured Lenders
- Competitive fixed and variable APRs starting at 4.44%1
- Multiple repayment options including: full principal and interest, interest-only, deferred, and flat payment
- Flexible payment terms ranging from 5, 8, 10, and 15 years2
- Coverage up to 100% of your school-certified cost of attendance ($1,000 minimum)3
- No origination, application and processing fees, no fees for early repayment
- Apply online in 3 minutes and get an instant credit decision
- Applying with a cosigner can increase your chances of getting approved and could result in a lower interest rate
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC.. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
2This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
3As certified by your school and less any other financial aid you might receive. Minimum $1,000.
Information advertised valid as of 06/01/2023. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.
- Variable Rates: 5.99% APR - 16.33% APR. Fixed Rates: 4.50% APR - 14.83% APR. Lowest rates shown include 0.25% interest rate discount with auto debit payments.1
- Apply online in minutes and receive an instant credit result2
- Multiple repayment options from in-school payments to deferred.1 No origination fee or prepayment penalty3
- Last year, students were 3x more likely to be approved with a cosigner4 and it may help you get a better rate.
- Borrow up to 100% of school-certified expenses, whether you're online or on campus5
Borrow Responsibly
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.
Loans for Undergraduate & Career Training Students are not intended for graduate students and are subject to credit approval, identity verification, signed loan documents, and school certification. Student must attend a participating school. Student or cosigner must meet the age of majority in their state of residence. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident), and provide an unexpired government-issued photo ID. Requested loan amount must be at least $1,000.
1Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment.
2In 2022, instant credit decisions were provided to 97.8% of applicants. Other applications typically received credit decisions in 3 to 5 business days.
3Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note-first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.
4Based on the percentage of borrowers who were approved for an undergraduate loan with a cosigner compared to the percentage of borrowers who were approved for an undergraduate loan without a cosigner from October 1, 2021 through September 30, 2022.5 For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website may be subjected to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time.
6 Examples of typical costs for a $10,000 Smart Option Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment may receive a loan term that is less than 10 years.
Information advertised valid as of 05/25/2023.
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.
Smart Option Student Loans® are made by Sallie Mae Bank. Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.
Edvisors is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.
© 2023 Sallie Mae Bank. All rights reserved. SLM Corporation and its subsidiaries, including Sallie Mae Bank are not sponsored by or agencies of the United States of America.
- AFFORDABLE variable rates starting at 5.98% APR with Automatic Debit Discount*
- 1% CASH BACK Graduation Reward*
- NON-COSIGNED option may be available for undergraduate juniors and seniors.
- PAY AFTER LEAVING SCHOOL – Customize your loan with flexible repayment options – start payments after graduation.
- FORGET FEES – No application, origination or disbursement fees. No prepayment penalty if you choose to pay your loan off early.
- COVER UP TO 100% of your tuition and eligible living expenses.
* Ascent's undergraduate and graduate student loans are funded by Bank of Lake Mills, Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs
Rates are effective as of 6/01/2023 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: www.AscentFunding.com/Rates
1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.
- Check your eligibility in just 2 minutes
- Flexible repayment options you can choose from
- No fees for origination, disbursement, prepayment, or late payment3
- Skip a payment once per year (once repayment period restarted)4
- Will cover up to 100% of the school's certified cost of attendance
- 9-month grace period (3 months more than most lenders)2
This information is for graduate and undergraduate students attending participating degree-granting schools. Borrowers must be U.S. citizens or U.S. permanent residents if the school is located outside of the United States. Non-U.S. citizen borrowers who reside in the U.S. are eligible with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and are required to provide an unexpired government-issued photo ID to verify identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.70% APR to 15.15% APR (excludes 0.25% Auto Pay discount). Variable rates range from 5.40% APR to 16.67% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan origination loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. Although the rate will vary after you are approved, it will never exceed 36% (the maximum allowable for this loan). Please note, Earnest Private Student Loans are not available in Nevada. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.
1You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
2Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.
3Earnest does not charge fees for origination, late payments, or prepayments. Florida Stamp Tax: For Florida
residents, Florida documentary stamp tax is required by law, calculated as $0.35 for each $100 (or portion thereof) of the principal loan amount, the amount of which is provided in the Final Disclosure. Lender will add the stamp tax to the principal loan amount. The full amount will be paid directly to the Florida Department of Revenue. Certificate of Registration No. 78-8016373916-1.
4Earnest clients may skip one payment every 12 months. Your first request to skip a payment can be made once you’ve made at least 6 months of consecutive on-time payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Please be aware that a skipped payment does count toward the forbearance limits. Please note that skipping a payment is not guaranteed and is at Earnest’s discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.
The information provided on this page is updated as of 05/03/2023. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice.
Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 303 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, e-mail us at [email protected], or call 888-601-2801 for more information.
THIS IS AN ADVERTISEMENT. YOU ARE NOT REQUIRED TO MAKE ANY PAYMENT OR TAKE ANY OTHER ACTION IN RESPONSE TO THIS OFFER.
Up to four repayment types (including no payments while in school) and multiple repayment terms help you find the loan that fits your budget
- Variable Rates: Starting variable rates range from 5.24% APR - 12.88% APR (with autopay)*, and will never exceed 13.95% (sometimes lower in certain states as required by law)
- Fixed Rates: Fixed rates range from 4.24% APR to 13.73% APR (with autopay)*
- Easy online application!
- No origination fees, late fees, and no insufficient fund fees. Period
- Up to four repayment types (including no payments while in school) and multiple repayment terms help you find the loan that fits your budget
- 0.25% discount when you set up autopay*
*UNDERGRADUATE LOANS: Fixed rates from 4.24% to 13.55% annual percentage rate ("APR") (with autopay), variable rates from 5.24% to 12.82% APR (with autopay). GRADUATE LOANS: Fixed rates from 5.00% to 13.35% APR (with autopay), variable rates from 5.74% to 12.82% APR (with autopay). PARENT LOANS: Fixed rates from 6.25% to 13.73% APR (with autopay), variable rates from 6.07% to 12.88% APR (with autopay). For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. Interest rates for variable rate loans are capped at 13.95%, unless required to be lower to comply with applicable law. Lowest rates are reserved for the most creditworthy borrowers. If approved for a loan, the interest rate offered will depend on your creditworthiness, the repayment option you select, the term and amount of the loan and other factors, and will be within the ranges of rates listed above. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Information current as of 05/31/2023.
Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, years of professional experience, income, and a variety of other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Financial Protection and Innovation under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
