Best Private Student Loans

Of course, the goal is to graduate from college with zero student debt. So, before taking any student loans, make sure your student is applying for every scholarship for which they are eligible. Remember, students can apply for scholarships throughout their time in college. This free guide on earning scholarships while in college explains where to find scholarships, has best practices for applications, and more.

Beyond applying for as many scholarships as possible, complete the FAFSA each year. This may open grant and work-study options, as well as federal student loans. The federal student loans that the FAFSA opens for students usually have the best interest rates and terms, and do not need a cosigner. However, for the vast majority of students, the lifetime limit they can borrow is $31,000 ($5500 for year 1, $6500 for year 2, $7500 for years 3 and 4).

If more funds are needed, the private student loan market is one option for funding the student's remaining balance. In most cases, parents/guardians will have to co-sign for these loans. There are several private student loan companies out there. My favorite, however, is Juno.

Juno is a group of more than 200,000 students and parents who work together to make lenders reduce the cost of student loans. You can join for free to access their deals and prepare for future payments. It takes less than a minute to join, and there is no fee or obligation.

To recap:

Step 1: Ensure your student is applying to as many scholarships as possible to reduce the cost of college.

Step 2: Complete the FAFSA to get access to federal student loans, as well as grants and work-study, if eligible.

Step 3: Compare the best rates and terms for additional student loans from various providers, including Juno.

Click here to apply for the Smarter College "A Better Financial Future" Scholarship.