Private Loans
Private Student Loans, also called Alternative Student Loans, may help to pay for expenses beyond the actual cost of a student’s education and federal loan limits. These loans will also assist those who do not qualify for federal financial aid or have exhausted all other options. Before considering private loans, students are encouraged to speak with the JABSOM Scholarship Director & Financial Aid Counselor first.
Overview:
- Private student loans are offered through various banks and private lenders.
- Students must apply directly with the bank or lender of their choice.
- Due to federal regulations, the JABSOM Scholarships Director & Financial Aid Counselor is unable to refer you to any private student loan lender.
- Eligibility for these loans depends on the student’s credit history and may require a co-signer.
- Interest rates and repayment schedules vary.
- Two types of alternative loans:
- School Certified
- The loan application is sent to the school to certify enrollment and eligibility.
- The loan amount cannot exceed the total cost of attendance.
- Interest accrues while in-school.
- Non-School Certified
- Only offered by a few lenders
- The loan amount is based on a student’s credit and is not subject to the cost of attendance.
- These loans tend to have a higher interest rate.
- Interest accrues while in-school.
- School Certified
- Residency and Relocation Loans are a private student loan.
Helpful Tips:
- Do your research and read through the terms and conditions!
- Compare a few loans. This will help to determine which loan offers you the best terms and benefits. Some things to consider other than the interest rates are:
- Repayment and deferment options
- Co-signer release options
- Check your credit report prior to applying for this loan and make any corrections ASAP!
- Know your FICO credit score. The higher the score, the more favorable the loan terms offered.
- Have an eligible co-signer ready.
- Borrow only what you need.