Frequently Asked Questions about Private Student Loans

Here are the answers to some of the most commonly asked questions about private student loans.

How do I apply for private student loans?

To apply for your private student loan, simply click on our "apply now" link anywhere you see it on our site. This will take you to our short, easy application. You can be pre-approved in as little as fifteen minutes.

How are private student loans different from federal student loans?

For federal student loans, you have to complete the FAFSA and, usually, credit checks are not required. These loans are guaranteed by the government and come with attractive terms (deferred repayment options, low rates, extended repayment terms, subsidized interest payments, etc.). Conversely, private student loans are non-government-affiliated loans that are offered by credit unions, banks, or other private lenders. Unlike federal student loans, private student loans are not issued on the basis of need, but rather on creditworthiness and repayment ability. Private student loans are designed to supplement federal financial aid and other sources by helping you pay for books, tuition and fees, living expenses, travel, etc. The terms and rates of private student loans will depend on your credit and the lender. With some applicants, a cosigner might be required to qualify.

What are the rates on private student loans?

The rates will vary depending on the purpose of the loan and your credit. To give you an idea, though, our private student loans for undergraduate students start at the published LIBOR rate (London Interbank Offered Rate) plus 3.6%.

Will I need a cosigner for private student loans?

If you have a good credit history, are employed, and are a U.S. citizen, you may qualify for a private student loan without a cosigner. If you don't meet these eligibility criteria, you can always apply with a qualified cosigner.

How much can I get from a private student loan?

Each year, you can apply for private student loans for up to the total cost of your expenses, less any financial aid. You can borrow the total cost of your expenses or $40,000 annually, whichever is the lesser.

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