How To Find a Private School Loan

Many parents, if they can afford it, prefer to send their children to private school, given the quality of education and standards of excellence practiced at such schools. A private school, by its very definition, means an educational institution which is managed by private groups or organizations, not by any federal, state or local governments. As such, the cost of a private school education is often prohibitive and requires huge financial resources, but that doesn’t mean that the doors to a private school education are barred for less-fortunate students! Listed below are some guidelines on how one can find a private school loan.

Types of private schools and sources of funding

Typically, private schools fall into the following categories:

• Schools based on religious affiliations
• Schools specializing in preparing students for colleges
• Military schools
• Schools for students with special needs

Funding for tuition fees and other expenses in a private school can be through the following sources:

• The school’s financial aid programs
• Grants and scholarships
• Tuition payment plans
• Private loans from banks and financial institutions

School aid programs

Contact the administration of the respective schools to find the process and documentation required for getting financial aid.

Tuition payment programs

This involves making tuition payments in regular monthly installments, instead of a lump sum amount at the beginning of the academic year or semester.

Grants and scholarships

Grants and scholarships are available from a number of resources. However, since these are limited to the extent of funding available, there is intense competition among a large population of students for a limited number of programs. Scholarships are usually dependant on achieving excellence in academic or other fields, such as sports, or could also depend upon religious and ethnic affiliations, such as Catholic upbringing, etc. Get started as early as possible in searching and locating resources which provide grants and/or scholarships and you could get ahead in the race for financial aid.

Private loans

Many banks and financial institutions now have loan programs which are specifically targeted at students looking for financial help. These loans are given not only for covering tuition fees, but all expenses related to a private school education – boarding, transportation, books, etc. Some of the more popular student loan programs directed at private school students are:

1. Your Tuition Solution Loan – providing loans which can be repaid over a period of 10-72 months and are open to those looking for private K-12 education.
2. AchieverLoan from KeyBank – charges no fees and allows for loan renewals. Loans are given to cover the full extent of tuition fees.
3. Sallie Mae K-12 Family Education Loan – open to parents and guardians with a good credit rating. Full cost of tuition plus an additional $6,000 for other expenses will be funded.
4. CitiAssist K-12 loans from Citibank – provides loans up to $15,000 per year without any fees. You can get a co-guarantor to sign along with you, in case your credit history is not up to the mark.

You now have a clear idea as to how you can find loans or funding for your child’s private school education. Preparing ahead of time and setting aside savings will also help decrease your financial burden!