Private student loans are a way to finance your education when federal student loans aren’t enough. If you need a private student loan, we can tell you how to get started.
A private student loan is just one of the many ways to pay for school. Private student loans are offered by private lenders and can be made by a bank, credit union, state agency or school.
Sometimes, the cost of attendance is not met by the financial aid package – this is called a gap. Students will take out private loans in order to pay the remaining cost of college.
Students and parents that are eligible! For borrowers, eligibility depends on the credit score of the borrower, debt-service-to-income ratios, minimum income requirements and other criteria.
You’ll have to shop around. Compare cost, convenience and customer service of several different lenders. Also, schools will typically provide a preferred lender list, which is a list of financial institutions that they trust to make loans.
Today, nearly all applications can be found online. If you have questions throughout the process, call the lender directly. Remember to borrow federal loans first – as they are cheaper – and use private student loans in the event that there is still a gap.