Private Loan Programs
In addition to federal loans (FDLP, and Perkins) students may also consider applying for private student loans to cover their educational needs.
Many lending institutions have private student loan programs designed to fill the gaps in educational costs. These loans are generally credit based and often carry much higher interest rates than federal student loans.
Some private loan programs may allow you to defer payments while in school, but interest will continue to accrue and potentially be capitalized (added to your principal balance).
Private loan programs generally do not carry the same repayment options available with federal student loans. Typically, there are no forbearance, deferment, or lower payment options with alternative loans. Unlike federal student loans which allow 270 days of delinquency before default, private loans can enter default as early as thirty days after missing your first payment.
MAXIMIZE YOUR FEDERAL LOAN OPTIONS FIRST! While occasionally you may find yourself in need of more money to cover the cost of your education, be sure to take full advantage of your federal loan options before turning to private student loans.
For specific information on alternative loan programs, contact the financial aid office at your school.