If you are going to pay for your child’s college through a parent student loan, you should compare your options before choosing a lender. It is wise to consider both federal government and private lenders that offer parent student loans.
Some of them include:
Federal Direct Plus Loans
The federal government has been offering parent student loans since 1980. The interest rate and the origination fee offered by federal direct plus loans for the year 2016-17 was recorded to be 6.31% and 4.28% respectively. They offer a 10-year term loan.
To be eligible for a federal direct PLUS loan, you need a bankruptcy and unpaid debt free credit history. An important thing to note here is that you will not be offered a lucrative interest rate if you have a good credit score. The interest rates of federal direct PLUS loans will remain the same throughout the financial year and would be set based on financial markets. A payment of the loan kicks in as soon as it is disbursed, you can request to defer payment until six months after your child leaves the school.
College Ave parent loans
Fairly new into the student loan space, it was started in December 2014. This parent student loan does not incur any origination fee and They charge a variable Annual Pay Rate between 4.03 to 6.03% and a fixed APR of 6.54%. The loan terms vary from 5 to 12 years.
To get a parent student loan from College AVE the applicant must have an annual salary of at least $70000 and a credit score of in mid-700’s. All fixed-rate parent student loan has the same APR. College AVE gives you the option to make a full monthly payment right away, or just pay the interest while the student is in college, or pay interest and whatever amount you can afford. Visit the official website to know more about the parent student loan offered by college AVE.
SoFi parent loans
SoFi offers some of the lowest interest rates available for parent student loan since their formation in the year 2011. However, they do not offer other flexible options such as entering forbearance if a parent is struggling to make payments. Like College AVE, it does not incur any origination fee. SoFi parent loans offer 2.95% to 6.13% variable APR and a fixed APR of 4.25 or 7.75%. They offer a 5 or a 10-year term to loan repayment.
You avail a parent student loan, you first need to fill out the Free Application for Federal Student Aid form or FAFSA which will decode your eligibility.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.