The private student loans also called the alternative student loans are those loans that are given to students who want to have the expense loans which are in addition to the Stafford loans as well as the Perkins loans or the PLUS loans.

The private student loans are taken by most of the students when they want more than the amount which was given to by any of the federally guaranteed loans. Now there are other options which are there which include the FAFSA or the Free application for the federal student aid. This will allow you to get the most out of the free federal said programs. In fact the private student loans are very expensive than the most of the other loans types.

It is generally better to have a co signer along with the student to lower the rate and in case of students with bad credit the rates can go as much as 6% higher then the loans which will be offered to students who have a good credit score.

The total amount which will be given out the banks that offer the private student loans is the cost of attendance minus the other aid and that is known as CoA-aid.

The issue of the bankruptcy and the private student loans is a very complex one and in general there are several ways to treat the private student loans and the bankruptcy laws and in most cases if the parent has had a bankruptcy filing it will have no effect on the child’s ability to get the private student loan.

Now in the case of federal loans or the PLUS loans or the Perkins loans in general there may be clauses which will allow you to get the loans but in the case of the private student loans it will be tough to get a loan if you have the bankruptcy filed in the last 7 or10 years. The reason is simple because of the fact that bankruptcy filing will affect your credit score and most of the private student loans are based on the credit score of the student or the co-signer.

Now people who filed for the chapter 7 bankruptcies will not have a good chance but rather people who filed the chapter 11 or the Chapter 13 bankruptcy. Now you may ask a question is the private student loan is discharged from the bankruptcy filing. This is a complex issue and the most common is that the private student loans are non dischargeable during the bankruptcy proceedings this is however not that simple and it has a lot of attendant issues involved with it.

In fact it all depends on a lot of processing that are happening in the court as the treatment of the costs incurred by the student can vary and it then depends on the judge to understand and give the direction if the private student loans are dischargeable under the bankruptcy filings. Never assume and always allow the judge to give the verdict in the case of the private student loans.