11 Jul How do I apply for a private loan?
Before borrowing a private loan, carefully consider your debt and repayment obligations on all loans. Determine how much you need to borrow by working out a budget for your educational costs and subtracting all of your available resources for those costs.
Borrow only what you need. You should not - and may not be permitted to - enter into a private loan for more than your cost of attendance for the period of enrollment (usually the school year) minus any federal, state, and institutional aid you have been or will be awarded for that period.
The NSLDS lets you view a summary of all of your federal student loans and obtain the contact information for the holders and servicers of your loans
If you decide to apply for a private loan, here are the steps to follow to begin the application process:
- Contact your school's financial aid office to inform them of your interest in a private loan and to obtain a Private Education Loan Applicant Self-Certification Form.
- Check with your lender regarding an online application and promissory note process. Ask what documentation the lender needs to determine whether you qualify for the loan. If an online promissory note is not available and the lender instead sends you a paper promissory note and a Private Education Loan Applicant Self-Certification Form, follow the directions for completing and returning the forms. The promissory note describes your rights and responsibilities associated with your private loan.
- Your lender will provide you with several loan disclosures before funding your private loan. Read them carefully, as they provide you with important information about accepting and cancelling your loan. Upon approval of your loan, you'll receive a disclosure from the lender that requires you to accept the terms and conditions of the loan within a specified deadline.