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Private loans are available to students who are not eligible for federal financial aid or who need additional funds to meet educational expenses; however, Federal Title IV funds may be more favorable than private loans. Private loans are expensive and should only be borrowed when all other resources, such as Stafford or PLUS loans, have been exhausted. These loans do not offer the same benefits as Federal Financial Aid and are subject to higher interest rates because they are not guaranteed by the federal government. Since this type of loan is based on your credit history, some lenders may require a co-signer. Always remember that these are loans of last resort. Â鶹¹û¶³´«Ã½ encourages students and families to begin with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student/borrower expects to earn in the future, before considering a private student loan.

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Things to Consider when Selecting a Lender

Applications and Eligibility: Requirements vary according to lender. Some of the most common requirements are listed below.

The borrower:

• must be an undergraduate or graduate student in a degree or certification program
• must be enrolled at least half-time
• must be a creditworthy borrower or a borrower with a creditworthy cosigner
• must be maintaining Satisfactory Academic Progress
• may be required to be a U.S. citizen, permanent resident, or eligible non-citizen.

Interest Rates and Fees: Many education loans involve fees. Fees are usually added to the amount you requested to borrow – but sometimes they are deducted from loan proceeds. Consult your selected lender and read your promissory note carefully to determine the fees associated with your loan.

Repayment and Deferment: Lenders are often willing to allow deferment of payments while the borrower is enrolled in school at least half-time. During this time, interest may accrue, but the student does not need to make any monthly payments. Contact the lender for specific options.

Borrower Benefits: Borrower benefits can significantly alter the cost of your loan. Make sure you research the fine print on a lender’s borrower benefits and keep up your end of the bargain.

Where can I find alternative loan lenders?

• View our .Ìý You can find additional loan products on each lenders’ site if the items listed don’t fit your needs.
• Your bank, credit union, or other financial institution can be a good place to start your search for a reputable lender; however, you should always compare several loan options or lenders.
• Employers sometimes help pay for a student’s education by offering financing options of their own. For example, some employers help employees with education expenses such as education through private loans, through automatic deductions from paychecks, and other financing options.
• Use the internet. Search websites that list alternative lenders.

Questions to Ask Prospective Lenders

• What is the approximate time it takes to obtain a decision for loan approval?
• Is a co-signer required?
• What is the minimum and maximum loan amount per year?
• Are there minimum enrollment requirements?
• Is the interest rate fixed or variable? If variable, how frequently can the rate change?
• Does the interest rate change when I enter repayment?
• What fees are applied to the loan and when and how are they applied?
• When does repayment begin?
• Is the interest and/or principal deferred while I am in school?
• What are the repayment options and are there any repayment benefits?

Application Process

1. Consult with the Office of Financial Aid to determine your eligibility for Federal Title IV Financial Assistance to ensure that you have exhausted all other funding options prior to applying for a private loan.
2. Complete the Application & Pre-Approval Process with the lender of your choice. The lender will notify our office if you have been pre-approved and request certification.
3. Complete a Self-Certification Form. This can be completed electronically with your lender.
4. Alternative loan applications may ask that you enter a requested loan period, or the dates for which you need a loan. Use the dates listed below.

• • Fall and Spring
    • Starts August Ends May
  • Fall OnlyÌý
    • Starts August Ends December
  • Spring OnlyÌý
    • Starts January Ends May

Â鶹¹û¶³´«Ã½ will check your eligibility. If you are eligible, our office will certify the loan amount you have requested not to exceed your Cost of Attendance.

Loan Disclosure Statement

Â鶹¹û¶³´«Ã½ is committed to providing students and their families with accurate and unbiased information regarding private educational loans. We do not endorse or favor any particular lender. We encourage all students to thoroughly research and consider their options when selecting a private loan lender.

As a service to our students and their families, the Financial Aid Office has compiled a list of private lenders who have consistently demonstrated reliable customer service, timely electronic disbursements, and competitive loan products and benefits. This list is provided to assist students in making informed decisions, but it is important to note that students are free to choose any lender they prefer, whether or not they are included on this list.

Please note that the lenders listed on our FastChoice Lender List represent the choices that, historically, the majority of our students have used. However, students are not limited to these lenders and may select any lender they wish. If you have any questions or need further assistance, please do not hesitate to contact our Financial Aid Office.

For more information, please contact our Financial Aid Office at 985.448.4048 or finaid@nicholls.edu