Understanding Private Student Loans
Where you should start: Government loans
Filling the gaps: National City Direct Student Loans
Where you should start: Government loans
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How you apply
Loans like Perkins, Stafford and PLUS have federally subsidized interest rates and deferment options. To be considered for these loans or any type of institutional financial aid, families submit the Free Application for Federal Student Aid application (FAFSA) sometime between January 1 and June 30, in advance of the academic year.
The FAFSA is used by virtually every two- and four-year college, university and career school for the awarding of federal student aid. The form may be submitted online at www.fafsa.ed.gov or by completing the paper form.
Be sure to fill out the FAFSA very carefully; mistakes could mean a missed deadline. You will get some indication of the help you're eligible for in about four to six weeks.
Who can get themAll college-bound students are eligible for federal loans. Your loan amount will depend on factors such as family income, number of dependents in the family, your ability to demonstrate financial hardship. The financial aid office at your school will use this information and your Expected Family Contribution (EFC) to determine your eligibility to receive financial aid. How much you can get
It depends. Many government loan programs use an "Expected Family Contribution" to determine if you qualify for aid. Expected Family Contribution is determined from the information you provide in the FAFSA. The EFC calculates how much money you and your family are expected to contribute toward your cost of attendance for the school year. If your EFC is below a certain number, you'll be eligible for a Federal Pell Grant, assuming you meet all other eligibility requirements.
Many federal loans also have annual borrowing limits. For example, with a federal Perkins loan, undergraduates can get a maximum of $4,000 a year, and graduates $6,000 a year. For more information on your financial aid options, visit www.StudentLender.com.
Filling the gaps: National City Direct Student Loans
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When it's smart money
A National City Direct Student Loan is a great solution for families caught between college costs that are soaring and aid programs that are limited. A National City Direct Student Loan is a smart supplement to a federal student loan to cover the full cost of education. To learn more about the best path to take when borrowing for school, visit www.SmartBorrowing.org.
It's also a practical choice for parents who can't afford the penalties of taking funds from their 401Ks or other retirement plans, who believe putting the house up with a home equity loan is something you do in an emergency, and who know that too many kids get themselves buried in high-interest credit card debt because the real, day-to-day cost of college has to be paid, one way or the other.
The National City Direct Student Loan is also an important choice for students because you should be free to go to the school you want to go to, not just the one you can afford.
National City Direct Student Loans have surprisingly competitive interest rates. And undergraduates have a choice of repayment options: Undergraduate students can delay repayment while still in school; save on fees by making interest-only payments while in school; or start making full payments right away to save the most over the life of the loan.
How you applyThere are no financial aid forms. Simply call a loan specialist at 800-260-2118, 24/7. Or apply online right now.
A National City Direct Student Loan is a private, or alternative student loan - which means it comes from a private financial institution, not the government.
The application can take as little as 15 minutes from start to finish. A preview of questions we'll ask is available, along with information about how a qualified cosigner can help you get preliminary approval in as few as 15 minutes - and a check mailed to you in as little as 5 business days.
Who can get themNational City Direct Student Loans are credit-based loans. The rules are pretty straightforward, and our basic eligibility requirements are what you'd expect.
In general, the harder you and your family have worked, the more you've planned and saved and managed family finances, the more likely it is you'll get all the help you'll need. You don't need to fit into a financial need or hardship formula. You won't be turned down because your family makes too much money or for having other federal and private grants and loans. You can use a National City Direct Student Loan with or without a federal loan.
Private student loans are available to students, and having a parent (or another creditworthy adult) as a cosigner will increase your likelihood of approval.
How much you can getYou decide how much you need to supplement your federal loan. Undergraduates and graduates can borrow from $1,500 up to the lesser of $40,000 or the estimated cost of their school program.1 Your National City Direct Student Loan will be based on financial creditworthiness, but you should borrow an amount that appropriately matches your actual education expenses when your federal loan is not sufficient to cover the full cost of education.
As you think about what you need, think about all the costs of going to college, especially the hidden ones: travel home, room and board, books, essential computer equipment, lab fees. You can use a National City Direct Student Loan for most education-related expenses, not just tuition. And, you can get your check mailed to you in as little as 5 business days.