Many lenders offer private student loans and the rate of interest vary greatly.

Private student loan also known as personal student loan or alternative student loan will help you paying the college fees, hostel rent, stationary and other expenses, at much competitive interest rates than credit cards. Nevertheless, private student loan should be only used when there is no option left. You should be very cautious while borrowing money from the lender, as you will have to pay it back with interest.

Qualifying for private student loan depends upon the credit criteria established by the lender. Credit criteria mainly differs with private student loan, whether the borrower is a parent or a student.

Here are some factors, which decide eligibility for a private student loan.

1) Your credit report

2) Your parents credit report

3) Delinquency problems

4) Excessive debt loads

5) A cosigner will be an advantage in getting a private student loan because when primary borrower fails to repay, that responsibility falls to the cosigner.