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.
Things 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 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.
- Students are required to be enrolled in at least a half-time standing.
- Half-time standing for undergraduates is 6 credits.
- Half-time standing for graduates is 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.
- Lenders most often selected by University of Nevada, Reno private loan borrowers
- 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.