Loan Alternatives
How it compares with loan alternatives
Every student should start looking for funding through scholarships, grants, a federal
loan, and – of course – your parents. But when these alternatives can’t cover the
entire cost of your college education, a Monticello Student Loan can help you pay
for the rest.
Learn more about how Monticello Student Loans compare to:
Monticello Student Loans vs. Federal Loans
When your federal loan leaves you short, a private college loan can cover the rest.
Many students first turn to federal student loans to fund their private college
education, and for good reason: all college students are eligible for these federally-backed
loans. They're guaranteed by the U.S. government, and they're processed in accordance
with rules and regulations issued by the Department of Education.
As with everything in college, be sure to do your research before applying for a
federal loan. The best starting point is the U.S. Department of Education’s Student
Aid Web site at www.studentaid.ed.gov.
When you’re ready to apply, submit the Free Application for Federal Student Aid
(FAFSA) between January 1 and June 30 in advance of the academic year. Go to www.fafsa.ed.gov
for more information and to complete the FAFSA.
Often, however, federal loans won’t cover the full cost of your education, and that’s
where a Monticello Student Loan can help. Our private college loan can supplement
your federal loan to cover education-related expenses – books, school supplies,
lab fees, even a laptop. Monticello Student Loans can bridge the gap between federal
student loans and what it really costs to go to school.
Of course, you can use a Monticello Student Loan even without a federal loan. As
you compare student loan options, remember that qualification for a Monticello Student
Loan is based on credit-worthiness, not hardship or financial need. With a Monticello
Student Loan, you decide how much you need1 and your check will come to you in as
few as five business days. You can even be preliminarily approved in as little as
15 minutes.
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Monticello Student Loans vs. Credit Cards
Private college costs are high enough. Don’t make matters worse by using plastic.
Every year, the cost of private colleges goes up, forcing many students to borrow
money not just for school, but for basic living expenses. You might be tempted to
use a credit card to pay for school-related expenses that aren’t covered by your
federal loans and scholarships. But the approach of “putting it on plastic” could
bury you under a mountain of debt by the time you graduate. Credit card debt is
at an all-time high in the United States, averaging more than $9,300 per household.1
Yet many students at private colleges still turn to credit cards, running up a mountain
of high-interest credit card debt – ensuring they will be paying for college long
after they graduate.
Every time you pay with a credit card, you’re adding to your overall debt load –
especially when you don’t pay the balance in full each month. Buying that $1,000
computer with plastic could wind up costing you $2,115 when you consider the interest.
That’s if you make the minimum monthly payments on a card with an 18 percent annual
rate – and it will take you 12 years to pay it off!2
That’s why a Monticello Student Loan makes sense. Paying for your education-related
expenses with a private college loan vs. a credit card can help you come out ahead
after you graduate. Monticello Student Loans have surprisingly competitive interest
rates – half of what many credit cards charge. And our flexible undergraduate repayment
options let you choose when to start paying back your student loan debt, so you
can get a better grip on your finances once you’re out in the real world.
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Monticello Student Loans vs. Tuition-Only Loans
A Monticello private college loan can help with a lot more than a "tuition-only"
loan.
You may get a lower interest rate with a tuition-only loan, but it comes with a
catch: you can’t use it to pay for all your other college expenses.
A tuition-only loan just pays for the basics. It doesn’t help with all your other
education-related costs. You’ll probably spend hundreds of dollars on books next
semester; you might spend thousands of dollars on travel. Those costs can really
add up.
A Monticello Student Loan helps finance more than base tuition requirements. You
can use it for almost any education-related expense: books, school supplies, lab
fees, laptop, or a personal computer. Our private college loan lets you concentrate
on learning, not on worrying how you’re going to survive.
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