Alternative/Private Education Loans
Fall 2025: First possible disbursement date is September 4, 2025
Spring 2026: First possible disbursement date is January 29, 2026
Private education loans may be an option for you if you need additional money to pay for the cost of attending college. We encourage you to file a Free Application for Federal Student Aid (FAFSA) or California Dream Act Application (CADAA) to determine your eligibility for federal and/or state aid and Federal Direct Loans or CADAA loans before considering private education loans.
ELM Select
There are many private loan providers and varying terms, interest rates, and fees. We have partnered with ELMSelect(opens in new window) to provide you with more information about private educational loans. We hope this tool will provide you with a way to make a well-informed decision when looking at Private Educational Loan resources to cover your educational expenses.
ELMSelect is a way for students and parents to compare various lenders and loan products. The lenders that are displayed on this tool are the top lenders that our students and parents have borrowed from over the past three years, in addition to lenders who offer quality products for our students and parents. Please note: You are not limited to the lenders that appear on this tool. If there is another lender that you would prefer to use, please do so.
Other Alternative/Private Loan Information
Private education loans are offered through a lending institution and are not a part of federal student aid programs. Interest rates and fees for private loans vary between lenders and are typically based on the credit of the borrower and cosigner. It is your responsibility to research and understand the implications of borrowing a private education loan. Keep in mind that alternative loans, along with other aid and educational resources, can never be more than the cost of attendance.
Certifications of Private Education Loans take up to six weeks to process. If you are applying for the spring 2026 term, your application must be submitted by December 5, 2025 to be certified by the spring fee payment deadline of January 8, 2026.
While there is a great range of private educational loans available, we do not recommend alternative loans in most cases, as they do not have the beneficial aspects of the Federal Direct Loan Program. If you need to pursue a private loan, make sure you get all the facts(opens in new window).
Understand Your Loan Options
Many families consider financing a portion of their student’s education with either a Federal Direct PLUS Loan or a private alternative loan. The comparison chart below will help you understand the features of each type of loan.
| Option | Federal PLUS Loan | Private Student Loan | Private Parent Loan |
|---|---|---|---|
Primary Borrower | Parent | Student | Parent or other eligible non-student individual |
Loan Maximum | Up to school-certified cost of attendance minus other financial aid received. | Generally, up to school-certified cost of attendance minus other financial aid received. | Varies by Lender |
Interest Rate | 8.94% fixed rate for 2025-26 aid year. Rate may change for the 2025-27 aid year on July 1, 2026. | Rates are based on the borrower’s credit history. | Rates are based on the borrower’s credit history. |
Origination Fee | Varies by lender, most offer 0% | Varies by lender, most offer 0% | |
Repayment Term | 10-25 years | Varies by lender | Varies by lender |
Payment Flexibility | PLUS loans are eligible for graduated and extended repayment options, federal consolidation, and some public service loan forgiveness options. | Repayment options vary by lender. | Repayment options vary by lender. |
Credit Check Required | Yes. Applicant or endorser cannot have adverse credit history. | Yes. Loan approval and pricing is generally based on creditworthiness. | Yes. Loan approval and pricing is generally based on creditworthiness. |
Minimum Enrollment Status | At least half time | Varies by lender, some offer loans for students enrolled less than half time. | Varies by lender, some offer loans for students enrolled less than half time. |
Options for Denied Loans | If parent applies and is denied, the student is eligible for additional Unsubsidized Federal Direct Loans. | If student is denied, they may apply with a cosigner. | Varies by lender. Parent or other creditworthy individual may be able to obtain a cosigner. |
Application Process | Online with lender | Online with lender |
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