A private loan is a consumer-based, non-need-based loan. The interest rate for a private loan is usually considerably higher than the rate for a federal loan. Depending on your lender there may be no payments required while you are enrolled half-time or more
What you should know before applying for a private loan
- Complete the FASFA (Free Application for Federal Student Aid). Even if a student has a high EFC (Expected Family Contribution), FAFSA will offer federal loans options to students without Satisfactory Academic Progress (SAP) issues. Federal loans may offer lower interest rates and better repayment options than private loans.
- Private loan interest rates are credit-based. Borrowers and/or co-signers with a good to excellent credit score are recommended.
- Private loans in combination with all other financial aid and scholarships cannot exceed the student’s budget.
Private loan requirements
- Students are required to be enrolled in at least a half-time standing. Half-time standing for undergraduates is six (6) credits. Half-time standing for graduates is five-to-six (5-6) credits.
- Undergraduate students must be in a degree-seeking program.
- Graduate special students may be eligible to receive private loans, provided loan lender requirements are met.
- Students must meet the Private Loan Satisfactory Academic Progress (SAP) policy.
- First-time borrowers must complete Private Loan Entrance Counseling.
How to borrow a private loan
- The borrower will apply directly with their lender of choice.
- Borrowers have the right to select any lender. It is important to compare interest rates and borrower/repayment benefits
- If you do choose another lender, you will suffer no penalty for selecting your lender of choice
- After you apply, the lender will contact our office electronically to request certification
Private Education Loan Applicant Self-Certification
Students are required to complete a Private Education Loan Applicant Self-Certification before the lender can disburse the funds. Most lenders provide the Self-Certification form electronically during the loan application process.