#private school loans #

Private Loans

Private student loans (also called alternative loans) should only be considered after first applying for federal student aid, using the Free Application for Federal Student Aid (FAFSA). Private loans are offered by private lenders and eligibility depends on a credit score.

Comparing Federal and Private Loans

No prepayment penalty fee.

You need to make sure there are no prepayment penalty fees.

When a Private Loan is a Good Option

A private loan may be an appropriate choice for you, if:

• You understand and have compared the terms of the Federal Parent PLUS loan and the terms of a private loan offered to you, and have determined that the private loan is a better choice for your family.
• You have applied for the maximum amount of all federal loans suggested to you and still have a difference between the cost of attendance and the total financial aid you have received.
• You are a dependent undergraduate student and your parents will not borrow (or have been denied) a Federal PLUS Loan .
• U.S. government regulations make you ineligible for a federal loan. You may still qualify for a private loan because such programs are not bound by the same federal restrictions. For example, if you are not making satisfactory academic progress, are in default on a federal loan, did not respond to verification requests, are enrolled for less than 6 credit hours, or are ineligible for federal loans for other reasons, you may be eligible for private loans instead.
• You owe a balance from a previous semester. You may be able to receive a private loan for an earlier loan period.
• You are an international student with limited borrowing alternatives.
• Please note: private student loans are only available to students whose cost of attendance has not already been met with other aid.