Credible takeaways
- Bank student loans are a type of private student loan you can get through banking institutions.
- They require a credit check, so you or your cosigner will need a good credit score to qualify.
- Bank student loans typically won’t offer the same protections that come with federal student loans.
If you need to borrow money for college, you’re not alone. About 40% of first-year students take out student loans, according to the National Center for Education Statistics. Many of these students rely on a combination of federal and private student loans, including loans from banks.
Before you take out a bank student loan, it’s important to understand how they work and compare your options. Here’s what you need to know, along with a few lenders worth considering.
What are bank student loans?
Bank student loans are a type of private student loan offered by privately owned financial institutions. Unlike federal student loans, which have standard terms and a single application process, bank student loan terms vary depending on the lender. Each bank sets its own eligibility requirements, interest rates, and repayment options, so you’ll need to apply directly with the bank to get a loan.
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