Private loans often offer interest rates that are slightly lower than for federal loans, though rates are dependent on each individual’s financial situation. Student loans from private lenders can also be borrowed with a variable interest rate, meaning that interest payment goes up or down depending on the current interest rate of the market. Limits on private loans vary from lender to lender.

Personal Loans

Personal loans are the most versatile loan type on the consumer lending market. While mortgages, car loans and student loans must be used for a specific purpose, personal loans can be borrowed for debt consolidation, day-to-day living expenses, vacations or credit building, among other things. The terms of personal loans vary as widely as their uses, though term lengths are generally under 10 years and the maximum amount is usually capped at $100,000. (más…)