Students who need additional funds beyond what they qualify for in federal student aid (including Federal Direct Loans) or students who are not eligible for Federal Direct Loans may wish to apply for a private education loan. Note: A Free Application for Federal Student Aid (FAFSA) is not required to apply for a private education loan.
A private education loan is a non-federal education loan, through a private lender typically issued in the student’s name and requiring a cosigner. The availability of these loans is declining and most lenders who still provide these loans are increasing their interest rates.
Each lender has different eligibility requirements, interest rates, repayment terms and conditions. For example, some lenders require students to be enrolled at least half-time in a degree-granting program, while others will lend to students who are non-degree seeking or are enrolled less than half-time.
Students and/or parents who find they must apply for a private education loan may contact their bank, credit union or other private lending institution to ascertain if they provide private education loans.
To search for private education loan options and terms visit FastChoice.