How to get the best private student loan

If you look closely you may have already seen it on TV or in a local store: back-to-school sales. While the most recent school year just concluded in many parts of the country, some parents and students are already preparing for the fall. This includes many who will be returning to campus for another year in college as well as those who are joining their university for the first time. It's never too early to get prepared — and to get your finances in order.

This includes coordinating student loans, both federal and private options. While federal student loans have benefits that all applicants should pursue, they may not be enough to fully cover education costs and living expenses. In these instances, a private student loan may be worth pursuing. Fortunately, there are multiple ways students can get a robust and cost-effective student loan right now.

Start by exploring your private student loan options here to see what rates you qualify for.

How to get the best private student loan

Student loans can help you finance your education but the ways to secure the best type are similar to other credit options. Specifically, you'll want to do the following:

Shop around for lenders

Whether you're looking for a mortgage or a credit card, a personal loan or car insurance, it pays to do your research and shop around. It's no different with private student loans. To improve your chances of securing a loan with the lowest interest rate and best terms you'll first want to shop around to compare and contrast available private student loan lenders. See what rates they're willing to offer you and how much money they'll provide at that rate. Look closely at the terms and conditions of each, too, as some will be more flexible than others.

Just be sure to obtain accurate information from all so you can make an informed decision. Apply for the same amount of money with one lender as you would with a second and third, too, so you can complete an apples-to-apples review.

Learn more about your private student loan options here now.

Improve your credit score

If you're committed to getting the lowest interest rate out there then first commit to improving your credit and boosting your score as high as possible. As is the norm with financial products and services, the best rates and terms will be reserved for those with the highest credit scores and cleanest credit histories. This is true for private student loans, too, although there may be some flexibility if you're young and building your credit profile for the first time.

Still, there are some smart steps you can take now that will pay dividends when you apply for a private student loan. Don't take out any additional debt or grow the amount you owe, if you can avoid it. And don't do anything that would require a credit check (which could result in your score being downgraded). Finally, review your credit report for any errors or inconsistencies that could be dragging down your overall credit score.

Consider adding a co-signer

But what happens if your credit history is uneven or incomplete? Then consider adding a co-signer to your application. A co-signer with top-notch credit will automatically make you a more desirable applicant - and more likely to secure better rates and terms - than if you had applied individually.

This is not to say that every private student loan applicant needs a co-signer or that every applicant should get one. But if your credit isn't reliable, you'll likely either have to accept unfavorable terms (until you can refinance) or you can get a co-signer attached for the short term while you build your credit further. Only the latter will help you get the best private student loan now.

Check your student loan eligibility here now and learn more.

Don't forget

Private student loans are just one way to finance your education. You should first exhaust your federal student loan options and any additional money or scholarships you can obtain. Federal loans, in particular, offer protections and perks that many private student loans do not. If those don't add up to cover your full bill, however, then go the private student loan route. But make sure to shop around and improve and build your credit as much as possible before signing on the dotted line. And don't be afraid to add a co-signer for the short term until you can securely take over the loan by yourself.