Private Loan To Do List:
- Obtain a Personal Identification Number from the U.S. Department of Education.
- Complete the FAFSA by March 1 (priority filing date).
- NIU's School Code is 001737
- See if you qualify for any Stafford or PLUS loans
- Search for Alternative loans through outside providers
Private Loans (Alternative Loans)
Alternative Loans are private loans that are made through lending institutions that are not necessarily part of the federal government's programs. They can be more expensive than federal government guaranteed loans.
Students are strongly encouraged to complete the Free Application for Federal Student Aid (FAFSA) first when looking into loan options. Stafford and PLUS Loans are processed first, and tend to have a lower interest rate, which may be the best loans for funding your education.
What to look for in Private Loans
Look for all of the following terms and conditions when shopping for a loan. Compare rates and pick the best loan for you in both the short-term, and the long-term.
- Annual Percentage Rate (APR) - The annual cost of your loan including fees and charges in addition to interest. Compare these rates and shop around for the best one that you can get.
- Repayment Incentives - Savings that reward borrowers who make payment on time.
- Loan Lifts - Annual limits or a total limit on what you can borrow.
- Federal Loan Lender - The lender participates in the Federal Family Education Loan Program.
- Pre-approval - Approval may be quicker if it can be done over the phone or online.
- Co-signer - A co-signer may or may not be required; a co-signer may help reduce the cost of the loan.
- Interest capitalization - Interest incurred while you are in school may be added to your principle balance; it may be capitalized at repayment or annually, which is more expensive.
- Repayment Schedule - Repayment may begin immediately or after you graduate or leave school.
- Repayment Period - The length of time you have to repay the loan.
Private Loan Resources
