For Immediate Release
June 18, 2015


College Tuition Bills Due: NH Nonprofit Offers Advice to Loan Borrowers

Concord, NH — EDvestinU®, the nonprofit private student loan program of New Hampshire Higher Education Loan Corporation, has been fielding college funding questions from New Hampshire’s college bound students and families. Loan Program Manager Rich Neilsen offers the answers to recent inquiries.

What is the difference between private and federal student loans? Private student loans are consumer loans made to individuals to help pay for college. They are provided by for–profit and nonprofit lending organizations and are not backed by the federal government. Private student loans are designed to supplement, not replace, other financial aid sources to fill funding gaps. Though it is necessary for many families to pursue private loan options to fund higher education, it is important to make informed decisions and apply for federal student loans first. More information about federal loans is available at www.studentaid.gov.

What if financial aid is not enough to cover the tuition bill? If students have already exhausted eligibility for campus–based financial aid and federal loan options and are still unable to cover billable expenses, a private student loan may be a good option. Generally, private student loans are less expensive than unsecured consumer credit cards and offer benefits including deferred payments and automatic payment withdrawal rewards.

Will students need a cosigner for a private loan? Typically private student loan lenders will require a cosigner if annual income or credit requirements aren’t satisfied by the student alone. Fortunately, some private student loan programs, including EDvestinU, have the option of a cosigner release through which a cosigner can be removed from the note after a certain number of consecutive on–time payments.

What is the current interest rate on private student loans for undergraduates? Private student loan interest rates could vary based on several factors including: student and cosigner credit eligibility, selecting immediate versus deferred repayment, amount borrowed, etc. It is important to note that an origination fee, when applicable, is deducted from the loan disbursement(s). However, some private loan programs, like EDvestinU, charge no origination fees. And, EDvestinU’s Annual Percentage Rates (APR) vary from 1.730% to 8.268% (variable) to 3.450% APR to 9.014% (fixed) with a 0.50% interest rate reduction for automatic payment withdrawal.

What questions should I ask when comparing private loans from different companies?

  1. Do you offer a fixed and variable rate option? If variable, how often will the rate adjust?
  2. What is the annual borrowing limit for undergraduates?
  3. Are payments required during the in–school period?
  4. Is there an interest–only payment option?
  5. How long can I defer payments while I’m in school?
  6. Where will my loans be serviced?
  7. Do you offer a program to consolidate existing private loans?
  8. Do you offer a cosigner release option?

For more information about the EDvestinU "NH–Connection" fixed rate loan, or its $3,000 Monthly Scholarship Giveaway program, visit www.edvestinu.com.