Application Process - Private Loans

Should You Borrow a Private Loan?

Federal Perkins, Subsidized Stafford, Unsubsidized Stafford, and PLUS loan programs will almost always offer lower borrowing costs than any private educational loan program. Due to the higher borrowing costs, most students and families should not consider borrowing private student loans until they have exhausted their maximum federal student and parent loan eligibility.

You should consider a private loan if any of the following situations applies:

• The student or parent is unable to borrow federal student/parent loans because they do not meet the Federal Eligibility Requirements.
• The parents are willing to pay higher borrowing costs for the opportunity to borrow a parent loan that can be deferred while the student is in school. (PLUS loan payments cannot be deferred while the student is in school, but many private loans offer this option.)
• The student is responsible for financing his or her education, and he or she needs to borrow additional funds.
• The student or parents need to borrow funds for a previous semester and it is too late to borrow federal loans. (Many private loans allow students/parents to borrow funds to repay overdue university charges from previous semesters).
• The student or parent has exhausted their federal loan options and needs to borrow additional funds to meet the student's cost of education.

Applying for Private Loans

Students/Parents may borrow up to the Student's yearly Projected Cost of Attendance minus any other aid the student is receiving (including other student/parent loans). To apply for a private loan, borrowers should contact their lender directly. We have a list of preferred Alternative Loan Lenders here.