What is a Private Loan?
A private student loan is at a variable rate, it is credit-based, and should only be applied for after all sources of federal aid including Stafford Loans, PLUS Loans, and Grad PLUS Loans have been exhausted. Q: How do my parents apply for a Private Loan? www.elmselect.com • New borrowers- We suggest you choose one of the lender below to ensure fast and accurate service. Follow the online process to apply for your loan and complete your MPN. First you will encounter a credit check which you will usually receive a very quick response to. Then you will need to complete your MPN. You MUST complete the electronic signature process to finish submitting your MPN. • Previous borrowers- To ensure easy repayment we recommend that you borrow your Private Loan through the same lender each year. Unless you notify the Financial Aid Office otherwise, your Private Loan will be certified with the same lender you used last year. You DO need to re-apply on your lender’s website each year.
A private loan is one offered to students to help finance the cost of their education. Unlike federal student loans that are backed by the government, a private, or alternative loan, is unsecured. These types of loans may be offered by the school directly or a private lender such as a bank or other financial institution. If you need to get financial assistance to help you pay for your education, it makes sense to consider all of your options. Taking out a private loan to pay for tuition, books, and other educational expenses means that you are not subject to the same restrictions as if you got a Stafford (federal student) loan. That type of financial help has limitations to the amount you are able to borrow. The cap in place depends on whether you are a freshman, sophomore, or junior and above. Student loans also may have fees attached to them, in addition to the rate of interest you will be charged on the funds. These are known as origination fees, and are charged to process the loan.
Tuition and fees are rising every year, but the federal loan limits aren’t. To help you manage the remaining cost of college, lenders work with your school to offer you an affordable loan solution – private loans (also known as school certified private loans, alternative student loans, or personal student loans).
