PRIVATE student
aid
Also known as alternative loans or
personal student loans
Not sponsored by government agencies
Available to students and parents from
banks and other sources
Interest rates are usually higher than
government loans.
Lenders provide different types of
private loans depending on your credit bureau history
Application and/or penalty fees may be
associated
Co-signer (with good credit history) may
be needed
Should understand the terms and
conditions
Minimum payment while in school may apply
(i.e. interest only)
Payment 30 days after disbursement
Variable interest rates
The organization offering the loan establishes
loan characteristics and eligibility requirements