| |9HIGHERReviewJULY, 2026the loan after graduation. Interest only payments require the student to make monthly payments of interest while in school starting at the time of disbursement. Certain lenders will provide benefits for autopay, no origination or prepayment fees, and benefits such as cosigner release after a set number of consecutive on-time payments. Before calculating the cost of the loan, it is important for borrowers to understand what they are signing, especially regarding accruing interest and when it will begin accruing.Comparing Private and Federal LoansBefore considering private loans, CTU students should take advantage of all federal financial aid options available to them because they provide borrowers with better terms and protections. Federal loans, such as Direct Subsidized, Unsubsidized, or PLUS loans, have fixed rates with deferment options and income-driven repayment plans--the terms are much better than private loans, and there is even forgiveness if one works in public service. Therefore, for most students, federal loans tend to have better advantages.By contrast, private loans are based on your credit, and are much more varied. Private loans usually do not have deferment or forbearance programs that are similar or even close to the extent of how federal programs operate. Private loans cannot be combined with federal loans either. Therefore, students should always take federal loans first and then consider private loans. Students should also be aware of how much debt they are taking on While private loans needed to fill in funding gaps, they carry more risk and there are less safety nets.Choosing the Right LenderCTU does not endorse or partner with specific lenders, students will need to do their own research. When shopping for lenders, students should be aware of and understand factors such as interest rates (fixed versus variable), repayment options, customer service, co-signer release practices, and borrower benefits. College Ave is one of the most popular products largely due to their flexible repayment terms and user-friendly process.Reading the lender reviews, checking ratings with the Better Business Bureau and utilizing student loan comparison tools can help students with their lending decision. It is always a good idea to consult with CTU's financial aid office, which can offer general advice and assist students in understanding their award letters and financing options.Risks, Red Flags, and Smart Borrowing TipsPrivate student loans are useful, though risky. Without federal protection, a borrower might be in significant financial distress if they face unemployment or reduced income post-graduation. With some variable rates, your monthly payment might climb dramatically and become unaffordable. Some lenders charge hefty late fees, or take aggressive collection actions on loans in default.To steer clear of debt, students should always borrow only the amount they need. Before borrowing, students can create a realistic budget for after graduation and research the expected salary for their area of study. Prior to signing any loan documents, students must complete a Self-Certification Form, which indicates the terms of the loan and confirm they understand it. A dependable cosigner can help with securing a lower rate of interest and reducing the overall loan cost.Private student loans can serve as an additional means of financing to help students at Colorado Technical University when done carefully and judiciously. Private loans can be a source of further funding beyond federal aid, but there are caveats--higher interest rates, reduced protections, and they are creditworthy--with these loans students should always compare loan offers, ask a financial aid professional, only borrow what they can pay back. Given the planning and knowledge of loans, CTU students could use private loans as a supplement for educational needs without being buried in debt.
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