Alternative and private education loans are offered by private lenders and may be less favorable than those of Title IV federal student loans offered through the Direct Loan Program. You should first determine if you qualify for loans or other aid, such as state and federal grants before seeking a private loan. Private loans are credit-based which means a lender may grant a loan, but the interest rates and fees may be higher if the borrower does not meet the lender’s credit requirements.
Sometimes lenders require a cosigner on a loan; in some cases, the presence of a creditworthy cosigner may keep interest and fees at lower levels.
A borrower may be denied by one lender and approved by another because of the different ways they interpret borrower financial information.
While we do not recommend specific private lenders we do provide access to a list of lenders who offer this service for students to evaluate. We recommend you research your options with different lenders and fully understand the terms and conditions of your loan before selecting a lender. You are not required to choose a lender from the list we provide and you can obtain a loan from any private lender you prefer.
Federal regulations require us to disclose certain information from the Truth in Lending Act (pdf).