Private Education Loans: What Students Should Know
Private education loans, also known as private student loans or alternative loans, are offered by banks and other private lenders 鈥 not the federal government. These loans are based on an individual鈥檚 creditworthiness and are often used to help pay for college costs when federal and state financial aid does not cover the full cost of attendance.
You are encouraged to complete the and use all available federal and state financial aid options before applying for a private loan. Deciding how to pay for college is a personal choice, and it鈥檚 important to select the options that best fit your financial situation.
Approval for private student loans depends on the lender鈥檚 credit review and loan terms. Most private loans are taken out in the student鈥檚 name and may require a creditworthy cosigner. Because loan details vary by lender, borrowers should compare interest rates, repayment options, cosigner release policies, and deferment or forbearance options before choosing a loan.
Applying for a Private Loan
When You Should Apply
We recommend applying for a private education loan no earlier than three months before the start of your term or semester. Because private loans are based on credit, approvals have a credit expiration date. For questions about credit expiration, you must contact your lender directly.
To confirm the start date for your term or semester at 色香视频, please refer to the Academic Calendar.
Loan Periods
During the application process, you are required to provide the loan period. This refers to the term(s) or semester(s) for which the private loan will be applied and may include a full academic year or a single term or semester, depending on your academic program.
| Term/Semester | Start | End |
|---|---|---|
| Full Year (Fall/Spring) | August | May |
| Full Year (Summer/Fall/Spring) | May | May |
| Fall Only | August | December |
| Spring Only | January | May |
| Summer Only | May | August |
For students who need to borrow a private loan, we recommend submitting a loan application for the full year. Full-year loan amounts can be split between multiple terms or semesters. To request an uneven loan split, please contact Student Financial Services at sfs@une.edu.
Research Before You Borrow
Choosing a private education loan is an important financial decision. Taking the time to research and compare lenders is essential to ensure the lender and loan product you select best fit your financial needs and long-term goals.
Borrowers are encouraged to carefully review interest rates, repayment options, fees, borrower benefits, and customer service reputation before selecting a lender.
The lenders included on have undergone a Request for Information (RFI) process and were evaluated based on these criteria. However, you are not required to borrow from any lender on this list. You and your family may choose any lender that offers private education loans, and it is ultimately the borrower鈥檚 responsibility to select the option that best meets their individual needs.
Loan Processing
After you are approved for a loan and complete the lender鈥檚 initial disclosures, your lender will send a private loan certification request to 色香视频. Our office will review your student account to confirm that all loan requirements have been met before processing the certification. This review may include verifying your enrollment status, cost of attendance eligibility, and academic standing, among other requirements.
Private loan certification requests are typically processed within 7 to 10 business days of 色香视频鈥檚 receipt of the loan application. Processing times may be longer during peak volume periods, which typically occur at the start of the summer, fall, and spring semesters.
Loan Disbursement
If you are expecting a refund from a private loan to help cover other educational expenses, it鈥檚 important to plan ahead. Private loan funds are sent directly to 色香视频 by your lender, and the University must wait to receive and apply these funds to your student account before any refund can be issued. In most cases, lenders do not release funds until after the add/drop period and enrollment has been confirmed.
Because of this timing, you should be prepared to cover initial out-of-pocket expenses such as books, supplies, and off-campus housing costs during the first few weeks of each semester. Once your loan funds are received and posted to your account, any eligible credit balance will be refunded. We strongly encourage you to enroll in direct deposit (PDF) to expedite the receipt of funds.
FAQ
It鈥檚 important to note that a private lender may approve you for a higher loan amount, but 色香视频 can only certify loans up to your Cost of Attendance (COA). This limit is based on your enrollment and other financial aid you may be eligible to receive. Your loan must be certified by 色香视频 before it can be finalized.
Most lenders require you to be enrolled at least half-time in a degree-seeking program. However, some lenders may allow borrowing with less than half-time enrollment or for certain certificate or continuing education programs.
Some lenders allow you to borrow to cover a past due balance, but eligibility requirements vary by lender. We recommend contacting lenders before applying to confirm they can meet your needs. On our , select yes to 鈥淧ast Due Balances Applied鈥 to find lenders that offer past due balance loans.
SAP requirements vary by lender. To see which lenders consider SAP, select yes to 鈥淪atisfactory Academic Progress Required鈥 on our or contact the lender directly.
When applying, you will be asked to select your loan period. This should match the term(s) you are enrolled in and need funding for. If you choose a full academic year, your loan will be split into two equal disbursements: one for fall and one for spring. If you choose one semester, your loan will be disbursed once for that term. The loan period does not mean funds are available immediately at the start of the term; it simply indicates which term(s) the loan is intended to cover. Please refer to the table above for loan period dates.
Your interest rate is set by your lender and may be either fixed or variable. A fixed interest rate stays the same for the length of the loan. A variable interest rate can change over time based on market conditions. The rate you receive depends on the lender鈥檚 requirements and your application details.
Some private lenders charge fees, such as origination or processing fees, while others do not. Fee types and amounts vary by lender, so it鈥檚 important to review the loan details and ask about fees before submitting your application.
Repayment terms vary by lender. Some lenders may require small monthly payments while you are enrolled in school, while others may offer an option to defer payments until after you leave. It鈥檚 important to review repayment options before applying so you understand your responsibilities. Keep in mind that private loans are a legal obligation and must be repaid according to your lender鈥檚 terms, even if you do not complete your academic program.