Private loan lenders offer varying interest rates and fees, influenced by factors like your credit score, academic level, and whether you have a co-signer. It’s crucial to consider your expected income when evaluating loan options.

Unlike fixed rates, private loans often have variable rates tied to market indexes (e.g., prime rate or 91-day T-Bill + 3.75%), which fluctuate over time. Rates may change quarterly or monthly and can differ between your school years and repayment period. Be sure to ask how and when unpaid interest is added to your principal, as this can significantly increase your total debt.

Lenders may also charge fees, such as origination fees at loan creation or additional fees when repayment begins. These fees can be based on the original principal or include accrued interest. Always clarify all fees upfront to understand the full cost of your loan.

Lenders often offer opportunities to reduce loan costs through incentives like fee reductions or interest rate discounts, with a common benefit being a rate reduction for setting up automatic payments. Eligibility for these perks typically depends on factors such as your credit score, academic performance, and whether you have a co-signer. To maximize savings, always ask lenders about the specific discounts and reductions available.

Most lenders require enrollment in a degree-seeking program at least half-time to qualify for a loan. However, some lenders offer loans for less than half-time enrollment.

FAFSA filers
The maximum amount a student can apply for in a private loan is determined by subtracting your financial aid offer from the Cost of Attendance (COA). For example, with a $30,000 COA and $10,000 in aid, you can request up to $20,000 in a private loan. Refer to Campus Connect for your COA and aid details.

Non-FAFSA filers
We recommend that you apply for financial aid by completing a FAFSA before applying for a private loan, as federal loans typically offer better benefits for students. If you choose not to complete a FAFSA and only want a private loan, you can find tuition and fee details on our website.

Not all lenders permit borrowing a loan to cover a past-due balance. Before starting the application process, confirm that your chosen lender accepts loan applications for this purpose by filtering "yes" on past due balance applied in the Loan Comparison Tool. If you’re securing a loan for a past-due balance, ensure the loan period aligns with the academic term(s) associated with the balance.

When applying for a private loan, you’ll need to provide a loan period, including start and end dates. These dates should correspond to the months of the academic term(s) for which you’re borrowing. Typically, loans are requested for the entire academic year or a specific term within it. Keep in mind that private loans for the summer term must be applied for separately, and loan periods cannot span multiple academic years. For questions about term dates, consult the Academic Calendar.

Borrowing money for education means signing a promissory note, legally binding you to repay the loan under its terms. Repayment typically begins after completing your education, and fulfilling this obligation helps build a strong credit rating that impacts your financial future.

Lenders may offer various repayment options, which can affect the interest rate. However, repayment terms often cannot be changed after the loan is issued.

Failing to repay your loans can lead to serious consequences, such as:

The lender seeking repayment from your cosigner.

• Difficulty obtaining credit for a car, house, or credit card.
• Wage garnishment, where your employer withholds payments from your paycheck.
• Legal action, resulting in collection and attorney fees on top of the loan balance.
• Private student loans being nearly impossible to discharge in bankruptcy.

Remember, student loans must be repaid even if you don’t graduate or secure a job after completing your education.