Private student loan do's and don’ts every borrower should know

Private student loans can help cover college costs once federal aid runs out. As with other types of borrowing, your credit score affects the interest rate you qualify for — with stronger credit typically leading to lower rates — and private lenders often provide higher borrowing limits than federal loan programs. But unlike federal student loans, private loans come with far fewer borrower protections. Options like income-driven repayment, broad hardship relief and loan forgiveness are typically limited, or unavailable altogether. Before you sign anything, here's what to know about the do's and don'ts of private student loans. The do's of private student loans Do compare the total cost, not just the monthly payment Before you commit to any new private student loan, ask for the total repayment amount, not just the monthly payment. That's the figure that actually tells you what you're paying for your education. Remember that a lower monthly payment, while easier on the budget in the short-term, means you're paying more interest over time than with the same loan amount stretched over higher monthly payments. If you're looking to keep costs low over the life of the loan, Sallie Mae is one of the more competitive options on rates and it charges no origination, application or prepayment fees, plus there's a 0.25% autopay discount. $1,000 up to 100% of the cost of attendance Annual Percentage Rate (APR) From 2.89% to 17.49% APR (fixed) and 3.75% to 16.37% APR (variable). …