Alternative/Private Education Loans
Fall 2023: First possible disbursement date is August 31, 2023
Spring 2024: First possible disbursement date is February 1, 2024
Private education loans may be an option for those students who need additional money to pay for the cost of attending college. We encourage students to file a Free Application for Federal Student Aid (FAFSA) to determine their eligibility for federal student aid and Federal Direct Loans before considering private education loans.
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 the responsibility of the student to research and understand the implications of borrowing a private education loan.
Certifications of Private Education Loans take up to six weeks to process. If you are applying for the Fall 2023 term, your application must be submitted by June 15, 2023 to be certified by the Fall fee payment deadline of July 26, 2023.
Alternative private 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 the responsibility of the student to research and understand the implications of borrowing an alternative educational loan. Keep in mind that alternative loans, along with other aid and educational resources, can never be more than the cost of attendance.
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 | 7.54% fixed rate for 2022/23 aid year. Rate may change for the 2023/24 aid year on July 1, 2023. | Rates are based on the borrower’s credit history. | Rates are based on the borrower’s credit history. |
Origination Fee | 4.228% | 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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