Private loans are unsecured educational loans made by private financial institutions such as banks or credit unions. These are loans that must be repaid with interest.
- Interest rates, origination and repayment fees for this loan program are based on the credit-worthiness of the borrower and/or co-borrower.
- Undergraduates will generally need to apply with a credit-worthy co-borrower. Graduate students may obtain better rates by applying with a credit-worthy co-borrower.
- Interest rates will vary on a monthly or quarterly basis and may not have a maximum rate.
- Repayment generally begins immediately after full disbursement.
- Some lenders may defer (postpone) repayment during periods of at least half-time enrollment and economic hardship; however, interest will accrue on the loan from the date it is disbursed.
- To reduce the cost of borrowing, consider making in-school interest or interest plus principal payments.
- Rules for repayment and deferment vary from lender to lender. Check with your lender for more information.
Preparation
Exhaust Federal Student Aid Options
Students who are eligible for federal student aid should complete the FAFSA and exhaust all federal, state and university aid options, including federal loans, before applying for a private loan. Federal student loans generally have more favorable terms and conditions than private loans. We recommend that you utilize all federal loan eligibility before turning to private loans.
Plan Ahead
The Truth in Lending Act (TILA) requires that you complete a self-certification form and also requires lenders to provide you with disclosures upon your application, when you are approved and at least three days prior to disbursement. Timing of the last disclosure may delay loan disbursements by an additional 1-2 weeks, so make sure to plan accordingly.
How to Apply
To apply for a private loan, please read the following information carefully and apply for your loan directly with the lender you choose. You have the right to select the private lender of your choice and do not need to select one from the USD lender lists.
Follow Important Guidelines
- Apply for your private loan within 90 days of the beginning of the semester so your lender's credit does not expire.
- Schedule ALL of the courses you plan to take BEFORE you apply for your loan so your loan is certified for the correct amount. Increases may not be possible after the loan is certified.
- For summer session(s), you must complete a separate loan application, since it is a separate loan term.
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