Private student loans are offered through a variety of banks and other lenders. The best rates on private loans generally are offered to borrowers who have good credit and/or who have a co-signer with good credit.
Before you consider a private loan, we recommend you determine your eligibility for federal student loans, which generally have better terms. More information about federal student loans is available at http://federalstudentaid.ed.gov/
General Information
- Private student loans usually have higher interest (compared to Federal Direct Stafford and PLUS loans) that accrues while the student is in school.
- Students (or co-signers) must have a good credit history to obtain a private student loan.
- Private loans will be certified for the amount requested, up to theCost of Attendance minus other financial aid the student is receiving at the time of certification. Students interested in obtaining an increased loan amount after certification must reapply through their lenders.
- Private loans will be certified for the requested loan period only. Once the private loan has been certified, students interested in changing a loan period must reapply through their lenders.
- Depending on the private student loan lender, it is possible to apply for prior loan periods (retroactively) after the end of a loan period.
- Note: Lenders do limit the number of days after the end of the term for which a retroactive loan can be requested. All retroactive private student loan requests are approved on an appeal basis only.
- The majority of private student loan lenders require a minimum of half-time enrollment in a degree-seeking program.
- Note: OSFA checks enrollment status at the point of disbursement, not when the loan is certified.
- Once a private loan has been school-certified, a disbursement date is set to the earliest a lender allows funds to be released prior to the start of a loan period. It is important to remember that all of the new Truth in Lending requirements emphasized in the next section must be completed in order to be eligible for a disbursement.
New Truth in Lending Requirements
New provisions in the Truth in Lending Act, implemented in February 2010, have resulted in a number of changes in the process of applying for and receiving private student loans. Lenders who provide these loans must comply with the following requirements:
- Lenders must provide 3 separate loan disclosures to borrowers: one at the point of application, one when the loan is approved, and one before the loan is disbursed.
- A waiting period of 3 business days is required between the time the borrower receives the final loan disclosure and the time the loan is disbursed.
- Students must also sign an Applicant Self-Certification form and submit it to the lender before the loan can be disbursed.
Private Education Loan Applicant Self-Certification
- Your lender should provide you with a copy of the required Applicant Self-Certification Form. If you do not receive one from your lender, you can download the form here . If you download the form here, we recommend that you contact your lender for your application ID or other identifier that will help the lender match the form with your application.
- You will need to know your cost of attendance and estimated financial assistance, to complete the Applicant Self-Certification form. If you receive financial aid, this information can be found through the Financial Aid Channel in Onestart. Student Self-Service > SIS Student Center > View Financial Aid > Select 2013 Aid Year>Financial Aid Need Summary
If you are not receiving financial aid, use the estimated cost of attendance figures from the OSFA’s Cost of Attendance information. Information about the Cost of Attendance for summer can be found on our Summer Aid page.
Remember to send your completed Applicant Self-Certification form to your lender. Your loan cannot be disbursed until your lender receives it.
Private Student Loan Programs
Students may compare and research various private student loan programs available in the marketplace. One such resource can be found at www.finaid.org/loans/privatestudentloans.phtml. Students must apply through the lender of their choice for a private student loan.
Private Student Loan Periods
- 2012-2013 Academic Year
- Full Academic Year (Fall & Spring Semesters): 8/20/2012 – 5/3/2013
- Fall Only: 8/20/2012– 12/14/2012
- Spring Only: 1/7/2013 – 5/3/2013
Note: We will begin certifying academic year private loan applications in June.
- 2012 Summer
- Summer: 5/08/2012 – 7/27/2012
Note: We will begin certifying summer private loan applications in May.
