Private Student Loans

A private student loan is a non-federal loan offered by banks, credit unions, and other financial institutions to help borrowers pay for eligible college or higher education expenses (which may include tuition fees, books, housing, and more). 

Borrowers can apply for a private student loan alone or with a co-signer (if permitted by their lender) to get the funding they need to pay for school. Since most credit decisions will factor in the applicant's credit score and income, having a co-signer can boost their application, improve approval odds, and help the applicant qualify for lower rates.

Each lender has its own eligibility requirements and should be reviewed before submitting an application. 

Private student loans help students pay for college and other higher education-related expenses. They are also used to provide supplemental financing for students who were not able to get sufficient funding through scholarships, grants, or federal student loans.

Federal student loans are loans disbursed by the U.S. government to help eligible students pay for college and graduate school. Federal loans are usually the first option for students interested in financing their education and offer very attractive rates, repayment plans, and other benefits. To apply for a federal student loan or see if you qualify for a federal grant or scholarship, visit https://studentaid.gov/h/apply-for-aid/fafsa and submit a FAFSA application.

Private student loans account for about a tenth of all outstanding student loan debt and are generally used to fill in the gap in situations where additional funding is needed, namely after federal student loans and other options are exhausted. Private student loans are especially helpful for individuals with good credit and income, or individuals who have a co-signer with good credit and income. It is also a great option for students attending graduate school, as federal aid for graduate studies is not as attractive as it is for undergraduate studies.

Generally, if you are a U.S. citizen or permanent resident over the age of 18 who is enrolled in an eligible school or graduate program, you should be able to qualify for a private student loan. However, it is important to note that every lender has its own eligibility requirements and it is always a good idea to check with them before moving forward.

Private lenders will likely consider your income, overall creditworthiness, and several other factors before approving your application. Individuals with lower income and/or bad credit may still qualify if they decide to bring in a co-signer with a higher credit score or income.

Yes - private lenders will typically factor in your credit score, among other considerations, before approving your loan application. We always recommend reviewing a potential lender's eligibility requirements before submitting an application.