When applying for a privately sponsored student loan you want to be sure and ask the right questions before you sign on that dotted line.

Make sure that you have obtained the lowest interest rate available to you. Ask if the rate of interest is fixed or if it will change over time. Be wary of student loans that offer a low 'teaser' introductory rate that may skyrocket after the initial period expires.

Find out when you must begin making payments. Ask about penalties and late fees. With some private companies these can be considerable. Be sure and determine whether your interest rate changes if you make even a single late payment. Some companies will drastically increase your interest rate if you are late even on a single payment.