Are you tired of searching and applying for private student loans one by one? What's the deal with that? Searching and applying for private student loans like this is time intensive and I'm excited to introduce you to a company that is solving this problem.
Sparrow is a financial services company and marketplace that allows you to compare real private student loan offers from multiple lenders through a single application. Founded by students for students, Sparrow helps you compare loan offers from multiple lenders side-by-side.
The benefit?
You know exactly how each loan offer stacks up when it comes to APR, monthly repayment, total repayment amount, and repayment options. Keep reading to learn more about Sparrow and how they're able to find you the best deal possible on your loans.
When should you consider private student loans?
The quick answer - when you have exhausted all other options such as scholarships, grants, and federal student aid. As mentioned before, Sparrow is a company founded by students, for students.
This isn't a company that's out there just trying to get you to apply for private student loans and keep you in debt for 20 years (which is the average amount of time it takes to pay off a student loan). They want to provide resources that are truly going to help you and make a difference on your educational journey.
Digging into their FAQ page, they offer a ton of great insight on what you should do prior to researching private student loans.
Borrow responsibly and take out only what you need. Many people think they don’t qualify for Federal aid and fail to realize the opportunity by not applying for it. In addition, there are a few sources of aid such as unsubsidized Stafford loans that are available regardless of need.
Sparrow's FAQ page
The FAFSA form is free and can help you understand how much additional financial support you’ll need from student loans after applying. Call the Federal Student Aid Information Center (FSAIC) at 1-800-4-FED-AID (1-800-433-3243) and ask for a free copy of The Student Guide: Financial Aid from the U.S. Department of Education. This toll-free hotline is run by the U.S. Department of Education and can answer questions about federal and state student aid programs and applications.
How does Sparrow make the student loan process easier?
Sparrow is the Expedia of student loans. As an example, when you're looking for flights, you don't go to Delta, Jet Blue, American Airlines, or other airline websites individually to search for flights. That would be too time consuming and you have better things to be doing.
Expedia takes airline prices, compares them for you, and delivers the best results all in one location. Now think about that, but for student loans and who's offering the most affordable option for you, given your circumstances. That's Sparrow!
I don't know about you but at 18 I didn't fully know what I was getting into with my student loans. I remember speaking with my guidance counselor, friends, and family about wanting to go to college and I was told it was the best thing to do in order to get a high paying job. Looking back all these years, I wish I took the time to really sit down and understand what I was getting myself into because I'm still paying my student loans back to this day, even though I've already paid close to double my original loan balance. 🤯
If Sparrow had existed back then, I could have used their resources to see what my payments would be over time, how much I would be paying back plus interest, and when my actual end date would be. This would have aided me in my decision making process before heading off to college.
Take a sneak peak at Sparrow's Help Center below to see how they're addressing questions about student loans for their users:
Watch How Sparrow Finds You The Best Possible Student Loan Rates
Wrap-Up
Sparrow is a phenomenal tool created by some wonderful people who care about solving the student debt crisis and making the student loan process more transparent.
If Sparrow had existed back in 2008, before I went to college, I know I would have been able to better understand the student loan process and what I would be getting myself into in terms of repayment.
Remember to exhaust all your federal funding options before taking out any private student loans. Federal student loans are generally more flexible when it comes to repayment (deferment, forbearance, and loan forgiveness eligibility) vs. private student loans. However, everyone's situation is unique so if you've exhausted your federal student aid, I highly recommend you check out Sparrow.
