"Let us think of education as the means of developing our greatest abilities, because in each of us there is a private hope and dream which, fulfilled, can be translated into benefit for everyone and greater strength for our nation." ?John F. Kennedy.

Obtaining a college education is among the most important things we can do to guarantee our effectiveness in this world. It's the key that unlocks doors to new experiences and opportunities. It'll help us to aid those around us and to change the world for the better. The problem is that obtaining a college education costs a great deal. Tuition by itself can cost anywhere between $4,000 and $120,000 a year! Because of this, many students do not have the ability to pay for college and, therefore, must seek other means of finance. One option that college students have is taking out a private student loan.

First of all, what is a Private Student Loan?

Private student loans, often referred to as alternative student loans, are loans that are taken from anywhere other than the federal government. Private student loans can be issued from banks, credit unions, or other financial institutions. These loans are not funded by the government and so they are not subject to Federal orders.

Alternative student loans are for students who would rather not take out a Federal student loan such as the Stafford student loan or who desire a supplement for their Federal loan for the reason that it alone will not cover all the expenses of higher education. If you choose to take out both a Federal and a private student loan remember that it will be more difficult to consolidate them later on.

The amount of money that can be borrowed from a financial institution is determined by the credit history of the student. This is the time when always paying your credit card bill on time really pays off.

Am I eligible for an alternative student loan?

Eligibility requirements vary from lender to lender but here are a few of the requirements that you will probably run into:

- You must be a citizen of the United States

- You must be at least 18 years old

- You must be able to prove that you are enrolled at a college or university

- You must have a good credit history OR have a cosigner that has good credit

Some institutions will require more and a few may require less, but this is a list of the fundamental requirements.

Prior to getting a loan:

SEARCH: Before you take out a loan remember to search around. Be wary of businesses that are only out there to scam you (there are some out there). Sometimes the offers that seem to be "too good to be true" really are too good to be true. Explore your choices to make sure that you get the best deal out there and that you avoid the scams.

SCRUTINIZE: As soon as you have found the loan you wish to take out, pull up a chair and carefully read the contract. Never put your signature on something that you haven't read or haven't read carefully. Understand fully the type of agreement you're making with this company. If you don't understand something, do not be scared to ask someone. It's better to feel a little stupid up front than feeling really stupid after you've had to pay an extra couple thousand dollars because you didn't read the contract thoroughly.

SIMPLIFY: Simplify your life by deciding now that you will consistantly pay your bills on time. Failing to do so will enlarge the size of your loan and your debt and add extra stress into your life. Choosing to pay your bills on time every month will help keep you out of the deep pit of debt and despair.

NOTE: Use of this article requires links to be intact. To learn more about Student Loan Alternatives please visit the Student Loan Alternatives page. A college student herself, Elise Fisher enjoys writing articles to help other college students learn more About-Student-Loans.com.