Because you want the best education that you can provide as a parent, you want your child to go to a boarding school. Not all families can write a check for the tuition bill each year. You may be a little short on funds, but don’t despair. You should always apply for any type of scholarship or financial aid available from your prospective school, and your admissions representative will normally be very helpful in this process.
After any other financial aid the school may or may not supply, there are solutions to fund your child’s education. There are primary and secondary loan programs available.
Things to think about when looking at a Boarding School Loan:
Loan terms : Most secondary educations loans are structured like vehicle loans and are fairly short. Some as little as a year and others 5 years. If you are looking at taking a long for longer, remember that you may be paying for college as well.
Loan Caps: Most Educational Loan Institutions have a lifetime cap on how much they will loan you. So be aware that if you are planning on borrowing for all four years of your childs secondary educations and choosing longer loan terms, you could hit the cap before your child has completed their primary and secondary education.
Origination and Guarantee Fees: The majority of education loans have a one of these fee up front. These fees are deducted from the disbursement checks that are delivered to you or the school. If there is no origination or guarantee fee that is apparent, many times it is calculated into the interest rate. Just be aware of the fine print and the fees that are being charged.
Interest Rates: Remember when you are getting a loan, you will be paying interest on the loan. The sooner you are able to pay off the loan, the less you are going to pay in interest which will bring the total cost of the loan down. Look at a loan calculator to find out exactly what the cost of the loan will be.
Credit: Educational loans for K-12 schools will require a credit check. They will be looking at your credit history, your credit score and your debt to income ratio. Parents with high quality credit will most likely be approved, where parents with lower credit ratings will not be. But remember, many of these financial institutions will let a grandparent or close friend apply for the loan without an issue, and that may be the route you want to go if your credit is poor or if you are self-employed.
Finding a Lender is also important and you will find some below:
- Repayment from 1 to 3 years. You can pay off the loan with no penalties.
- You can borrow up to 100% of the cost of your childs education.
- No application fee.
- You must by a U.S. citizen or permanent resident and meet current credit and other eligibility criteria.
- You must be able to provide proof that your child is enrolled in an eligible school, either through school certification of by providing an enrollment agreement or tuition bill.