what are private loans

Best answer


Loans from non-bank entities

People also ask


  • What is a private money loan?

  • Private money loans 鈥?or simply private money 鈥?is a term used to describe a loan that is given to an individual or company by a private organization or even a wealthy individual. The organization or the individual is known as a private money lender.

  • What are private student loans and how do they work?

  • Private student loans, like federal student loans, can be used to pay for college costs, but they originate with a bank, credit union or online lender rather than the federal government. Private student loans are best used to fill a college payment gap after maxing out federal loans.

  • What is the difference between a private and federal loan?

  • Federal loans are preferable to private loans for several reasons: You don鈥檛 need a credit history or a co-signer. The interest rate on federal loans tends to be lower. Federal loans offer benefits like income-driven repayment options and forgiveness opportunities.

  • Are private student loans the best choice for You?

  • Private student loans are best used to fill a college payment gap after maxing out federal loans. Federal loans are preferable to private loans for several reasons: You don鈥檛 need a credit history or a co-signer.

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