Using private student loans to pay for school
After maximizing all free money and fully exploring federal loans, private student loans are another way to cover college costs.
As with any loan, be conservative and only borrow what you absolutely need and can afford.
See our comparing student loan options page and ask your financial aid advisor about the private student loan programs that are available to you.
The process for qualifying for private loans is different from the one for federally sponsored loans. Each lender sets its own credit criteria. Those criteria may, in turn, vary by loan type and whether or not you apply with a cosigner.
Can I pre-qualify?
If you want to know if you'll qualify for a private student loan before going through the full application process, you can apply to be pre-approved for a loan.
Credit pre-approval eliminates uncertainty up front. You'll know that you qualify and you'll know the amount you can expect to get. This can save you time and stress; it also frees you to look for alternative funding if you don't qualify or if the amount you are pre-approved for doesn't cover your expenses.
Credit scoring is a way some lenders determine if applicants will qualify for their loans. If your credit score is in an acceptable range, you will probably qualify for the loan.
You may be required to use a cosigner for a private student loan. In many cases, a cosigner can get you a lower interest rate and more favorable terms.
By cosigning the loan, your cosigner backs up the primary borrower (you) with his or her good credit history. Cosigning a loan is an important responsibility. Make sure you and your cosigner understand all the ins and outs.