The cost of a college education has become such a big worry that many parents begin saving for their children's schooling even before the children are born. But even long-term planning for college often fails to keep pace with ever-rising tuition and boarding fees, and even the most prudent parent often find themselves with a high school senior and no idea how they are going to augment the college fund with the extra money it now requires. But help may not be as far away as it seems.

A private education loan is available in several different forms for those students who qualify, but there is significant misinformation floating about as to the qualification requirements.

Unsecured Private Education Loans First of all, most private education loans are unsecured; this means that the student is not obliged to guarantee repayment with any sort of collateral. However, having a good credit record is a big help if you are to get a private education loan, simply because it is neither secured nor backed by the Federal government.

If you have yet to establish a credit rating, or yours is not the best, you may still qualify for a private education loan if your parent or someone else with a good credit rating is willing to co-sign the loan. If you find a lender who will give you a private education loan in spite of your poor credit history, you can expect it to carry a hefty interest rate, and even extra processing fees. But you can use the private education loan as an opportunity to lift your credit rating by making your payments on time.

What A Private Education Loan Covers While many people who do not qualify for Federal private education loans because their family's income is too high, there are lenders who will provide a private education loan so that you can cover the educational expenses which go beyond mere tuition and materials. You can use a private education loan for any expenses associated with your college career, from campus room and board to having a PC and Internet access in your dorm.

Because you are working with a private lender, there is not annual deadline before which you must apply for your private education loan. You will know within minutes of applying whether or not you have qualified, and if you have been, you will receive the money directly and can allocate it as you wish to cover your educational expenses.

Most private lenders will not require you to begin repaying the loan until after you leave school, simply because they recognize that as a student you may not have the means to come up with monthly payments.

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