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Loan options: choosing the right loan for your situation

August 21, 2025 Paying for College
Mother and daughter sitting next to each other on sofa planning college college journey

Choosing how to pay for college is a big decision. For families facing a funding gap after utilizing federal aid, savings, scholarships, and grants, Granite Edvance now offers two great options: a Private Student Loan and a Private Parent Loan. While both can help cover the cost of higher education, they work in different ways. You can use each of these products on their own to meet your needs or use them together; this guide breaks down the pros, cons, and key differences to help you make an educated choice. 

Option 1: Granite Edvance Private Student Loan 

This loan is designed for students who need help covering the cost of tuition, books, and other college expenses. It usually requires a creditworthy cosigner (often a parent or guardian).

Pros: 

  • Student is the primary borrower, meaning they’re responsible for repayment 
  • Offers competitive rates and choice of repayment terms 
  • Offers deferred repayment while in school 
  • Cosigner release may be available after meeting certain payment and credit history conditions 
  • Helps the student build credit history over time 
     

Considerations: 

  • Most students will need a cosigner to qualify or get a better rate. 
  • Interest begins accruing immediately (even if payments are deferred while in school) 
  • Student is responsible for the debt, even if their post-college income is low 

Option 2: Granite Edvance Private Parent Loan 

This loan is for NH parents or stepparents who want to finance the costs themselves rather than have their student cover them. 

Pros: 

  • Parent is the borrower, taking financial responsibility off the student 
  • Offers competitive rates and choice of repayment terms 
  • Can help students graduate debt-free and start their careers with a clean slate 
     

Considerations: 

  • The parent is 100% responsible for repayment (though the student and parent can work together to pay it) 
  • Loan cannot be transferred to the student later 
  • Interest begins accruing immediately  
  • Loan may impact a parent’s ability to borrow for or otherwise cover other needs (e.g. retirement, home loans) 

Key Differences at a Glance 

Feature Private Student Loan Parent Loan 
Who borrows? Student (with cosigner) Parent 
Credit responsibility Shared or student alone Parent only 
Cosigner needed? Usually, yes No (parent is the borrower), but cosigner is allowed 
Builds student credit? Yes No (student not on the loan) 
Can student defer payment? Yes, while in school No  
Loan transfer option? Possibly, via cosigner release No, stays with parent 

Which Loan Should Your Family Choose?  

The Student Loan may be a good option if: 

  • The student wants to take financial responsibility 
  • The parent or other willing party is comfortable cosigning and wants to help the student build credit 
  • Flexibility in repayment (like deferring payments while in school) is important 

 The Parent Loan may be a good option if: 

  • The parent prefers to manage the debt to reduce the student’s financial burden 
  • The parent has strong credit and income to qualify for low rates 
  • The parent wants the student to graduate without loan obligations 

Final Thoughts 

There’s no one-size-fits-all answer when shopping for private student loans. It depends on your family’s financial situation and philosophy toward borrowing. If you’re still unsure, consider talking to your financial advisor, a financial aid counselor and/or Granite Edvance’s Customer Experience Team for personalized guidance. 

Remember: Both loans can help make college possible, but understanding who holds the responsibility and how each loan impacts your long-term finances is key. 

Have questions? Want to talk through your options? Ready to apply? We offer several ways to connect:  

By Phone: 855-887-5430. Monday–Thursday from 8 a.m. to 8 p.m. EST and Fridays from 8 a.m. to 5 p.m. EST.  

By Email: Reach us any time at loansupport@graniteedvance.org—we respond promptly!  

In-Person or Phone Appointments: For more in-depth support, families can schedule personalized sessions through Calendly. 

Subject to Credit approval, Granite Edvance and EdvestinU loan products may be funded by Granite Edvance Corporation (NMLS ID# 1527348 www.nmlsconsumeraccess.org) or Bank of Lake Mills, member FDIC.   

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