Private loans are non-federal educational loans. These loans are typically offered by private lenders (educational financing institutions, guarantee agencies, banks) to assist with educational and living expenses not covered by other financial aid. In general, you may borrow up to the cost of education minus all other financial aid you receive.
For many students and parents, private loans represent an important resource to help finance educational expenses. Private loans can help fill the gap between need-based financial aid and your total educational costs. Private loans also can help with “one-time” educational expenses, such as foreign study.
IMPORTANT REMINDER:
Before considering a private loan, make sure that you have taken advantage of all your federal student loan opportunities. If you are unsure about your federal loan options, please contact the Office of Financial Aid.
You should carefully review your expenses before deciding if you need a private loan. If you decide to borrow, you will need to choose a lender and complete the application process. Most lenders offer online and/or phone applications. In general, the lender will run a credit check before it agrees to offer you a loan. Many student borrowers are required to have a credit-worthy co-signer. Most lenders distribute private loan funds electronically. In some instances, however, a lender may provide you with a paper check that you must endorse.
For more information on the private loan process visit our How to Apply for a Private Loan web site.
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