Private student loan programs are non-federal loans issued by banks, savings and loan associations, and credit unions. These programs allow students to borrow up to the full cost of attendance minus other forms of financial aid. Most students will need a creditworthy co-signer such as a parent or other relative in order to obtain a private loan. Private student loans carry variable interest rates based on the LIBOR rate or the Prime rate, and repayment periods may range from 5 to 25 years. Interest rates, origination fees, loan maximums, and repayment terms should be carefully considered when researching and choosing a private loan.
Before you decide to borrow, carefully investigate all of your options; make sure you understand the application procedures, eligibility criteria, interest rate and processing fees, disbursement procedures, and repayment terms for each program you are considering. Private education loans are typically the most expensive borrowing option and should only be considered after eligibility for all federal student and parent loan options have been determined. Once an application is approved by a lender, the school will receive an electronic certification request. The proceeds of private student loans may not be credited to a student’s account until the funds are actually received by the university. Therefore, if the loan proceeds will be used to pay a remaining balance due, the loan application process should be completed well in advance of the bill payment due date. The University of La Verne must certify the loan prior to any funds being applied to the student’s account.
The university cannot recommend specific lenders. However, students and parents have used the lenders listed in FastChoice to meet their education loan borrowing needs. Using FastChoice, a service provided by Great Lakes, students and parents can compare and contrast the terms and conditions of each loan option and select a private student loan that best suits their financial circumstances. Students are not limited to the lenders appearing on the FastChoice list and may choose any lender that best suits their educational borrowing needs.