Overview
- Loan Type: Private student loans
- Eligibility: Based on lender approval
- Enrollment: Part-time or full-time
- Credit Check: Typically required
- Interest: Variable or fixed rates
- Repayment: Determined by lender
- FAFSA Required: Recommended
- Resources: Finaid & MPOWER Financing
About
Private loans are educational loans offered by banks, credit unions, and other private lenders to help students cover remaining educational expenses.
When considering these loans from a personal finance standpoint, it is extremely important that you have first exhausted all other financing options such as grants, scholarships, and all types of federal student loan options. Without excellent credit histories, you will likely need to find willing and creditworthy individuals to co-sign your private loan applications. Applying with a worthy co-signer will likely increase your chances of approval and partially lower your interest rate.
We recommend you听request听a free copy of your credit report from听each of听the three credit bureaus (Equifax,听Experian, and听TransUnion) at听, as you听are entitled听annually by law. While you will be required to pay a fee to each one of the three credit bureaus to obtain your听actual听credit score(s), it is important to at least check your credit report(s) annually for any errors or illegal use.
Please refer to the Private Loan application process below. If you have any additional questions you may听contact the Financial Aid Office听for more information.
Private Loan Process
Make sure you have completed the FAFSA, accepted your annual maximum in Direct Federal Student Loans, and exhausted all other financing options first.
Take time to learn more about the different lender options and any regulations associated with private loans. If you are having trouble choosing a lender, view the list of preferred lenders that we have compiled on听! This list is created by a听board of professionals, comprised of competitive lenders, and reviewed biannually. Lenders are added, or removed, based on criteria about historical data collected and information provided about specific loan products.
FASTChoice Options
This list听is created by a board of professional and is comprised of听lenders that the board has deemed competitive. This list is reviewed biannually听and lenders are added, or removed, based on criteria about historical data collected and information provided about specific loan products.听Carefully review and compare the loan information on FASTChoice, and apply with the lender that best suits your eligibility and needs. You may also use a lender that is not on the list.
Private Loan Regulations
Regulation Z Requirements听 |听 Private Loan Regulations (Title X of the Higher Education Opportunity Act):听As of February 14, 2010, both private lenders and institutions offering private loans to students must comply with a new set of regulations per the Federal Reserve Board. Under the new laws, a lender offering private loans for postsecondary educational expenses must first听provide听a disclosure about loan terms and features at the time of application and must听disclose听information about federal student loan programs that may offer less costly alternatives.
If the听initial听application reaches an approval status, a second loan disclosure statement听must be听provided to the student at that time. If a student accepts the loan terms provided in the second disclosure statement, a third听final听disclosure must be provided when the loan听is consummated.
An听additional听piece of the new private loan regulations requires an applicant to complete a 鈥渟elf-certification form鈥� and return it to the lender before they may听disburse听the loan to the school. The 鈥渟elf-certification form鈥� may be found on the lender鈥檚 website. Each private lender may have a slightly different application process, so it is best to contact your private loan lender directly if you have any questions.
Last, a lender must provide听the student with听a 3 day rescission or 鈥渞ight-to-cancel鈥� period after the final loan disclosure form听is sent听to the student. The 3 day rescission period means that once the school has certified your loan and it is ready听to be听disbursed, there is a mandatory 3 business day waiting period before the lender may disburse loan funds to the school. If a lender only offers a mailed Final Disclosure (not online), then they must wait 6 days to disburse the loan to the school (3 days for mail time and an additional 3 day 鈥渞escission or 鈥渞ight-to-cancel鈥� period).
Apply online with the lender of your choice. You, and/or your co-signer, will receive the Application Disclosure Statement and the Self-Certification form that must be completed and returned to the lender.
The lender, with whom with you and/or co-signer applied with, will conduct a pre-approval credit investigation and notify the applicant(s) as to approval or denial. If approved by a lender for a private loan, you, and/or co-signer, will need to review the Master Promissory Note (MPN) for accuracy, sign, and return to the lender. Most lenders offer an e-sign option online in place of the MPN.
You, and/or co-signer, will receive a Final Disclosure Statement. This will allow you up to three (3) days to cancel the loan before it is disbursed to the school.
The loan proceeds will be sent directly to the 海角在线 and will be applied to your account to clear any balances. Any remaining funds will be refunded directly to the borrower.
You will need to renew your Private Loan application with your lender each academic year.
Loans for International Students
While you may not be eligible for federal aid, international students have options to help make 海角在线 affordable for you. Some private loan solutions may be available to you via