The Office of Financial Aid does not recommend students borrow private loans over federal loans when eligible. The terms and conditions of federal loans are more advantageous then private loans. There are options with federal loans that do not exist with private loans. For example, Federal Loan Consolidation, Public Service Loan Forgiveness, Income Based Repayment Plan, fixed interest rates are features not available on private loans. These are very beneficial options for our students. We encourage students to weigh all their options before applying for private loans.
Private Loans are non-federal credit based educational loans and should be considered as loans of last resort. Several lenders have loan programs for students who are unable to finance the cost of their education with traditional forms of financial aid or are international students. Eligibility requirements for private loans vary from lender to lender. Generally, any student who has an adverse credit history may be denied. These loans are not guaranteed nor subsidized by the federal or state governments.
Private Loan Summary
- Credit-based. The lender will review a student's credit report when determining eligibility. Generally, a student with an adverse credit history may be denied.
- Not guaranteed or subsidized by the federal or state government.
- Not need-based, but other financial aid is taken into consideration when determining the maximum private loan amount for which a student is eligible.
- Eligibility is determined both by your lender and the Office of Financial Aid and cannot exceed a student's Cost of Attendance budget for a single academic year.
- Variable interest rate which is not capped.
- Deferred payments. Principal payments on these loans are usually deferred while student is in attendance. However, I interest will accrue during the deferment period.
- Repayment, dependent on the lender, begins 6 to 9-months after student graduates or ceases to be enrolled at least half-time.
- Not as favorable terms and conditions as federal loans.
- Cannot consolidate, use Public Service Loan Forgiveness, or use multiple repayment plans as federal loans.
- We recommend you review the private loan information and application carefully before applying.
- Loan terms will vary from lender to lender. Please contact your lender for specific loan terms.