Private Loans

There are many ways to finance your education at NIU. Private loans are for students looking to bridge the gap in funding their college education. Also called alternative loans, these loans are offered through private lenders such as banks, credit unions, and loan companies and may have different requirements, rates, and/or terms and conditions than loans offered through federal aid. While private loans are an option for funding your education, it is in your best interest to get as much information as possible about your financing options before signing loan documents. Other financing options include a home equity line of credit, which may have tax benefits for some families, or another type of collateralized loan.

There are many lenders that offer private education loans. NIU does not have a preferred lender list and has not entered into a preferred lender arrangement with any lender. Students have the right to select any lender that has alternative loans. NIU will process any loan through any lender of the student's choosing. Students are encouraged to shop for the right loan for them. To complete a private education loan application, students should either apply online or contact the lender directly.

Historical Lenders

An average of 1,000 Huskies per year utilize an alternative loan as a financing option to help cover the cost of their education. Historically, over the past 3 years, both undergraduate and graduate students have obtained loans from the lenders listed below. This list is not all encompassing and students are encouraged to find the lender that offers the best options in terms of interest rate, repayment plans, and eligibility requirements. Some lenders may not be on our historical lender list because they do very few loans for our students and we have insufficient information on their ability to lend to students. NIU’s list includes only lenders who have had more than 10 undergraduate borrowers and/or more than 5 graduate borrowers in each of the last four years. The lenders in this list appear in alphabetical order.

• Ascent, 877-216-0876
• Citizens Bank (formerly TruFit), 800-922-9999
• College Avenue, 844-422-7502
• Earnest, 888-601-2801
• MPOWER, 202-417-3800
• Prodigy Finance, 866-533-3304
• Sallie Mae, 855-756-5626
• SoFi, 855-456-7634

Considerations When Applying for Private Loans

The following factors may be part of the eligibility requirements when applying for a private loan (subject to the lender's discretion):

• Enrollment Status: Half time enrollment. (Fall/Spring: 6 hours for undergraduate or law; 4.5 hours for graduate.  Summer: 6 hours for undergraduate; 4 hours for law; 3 hours for graduate).
• Satisfactory Academic Progress
• Special Criteria: (e.g, graduate standing or a particular major)
• Degree-seeking/Certificate-seeking
• Citizenship/Residency Status
• Co-signer
• Prior Terms (most lenders will only loan for a semester that is 365 days or less in the past)

Students are encouraged to read all terms and conditions before applying for a private loan. Here are some questions that you may want to ask the lender:

• Does the application process include a credit check?
• Do I need a cosigner?
• How much can I borrow?
• Does the loan require Satisfactory Academic Progress?
• Is less than half-time enrollment allowed?
• Can I borrow a loan for a prior academic term?
• What is the interest rate?
• Is the interest rate fixed or variable?
• Are there other fees associated with the loan?
• What will be the total cost of the loan?
• When will payments become due?
• Is there a grace period?
• Is deferment or postponement available while I’m still in school?
• What are the repayment options?

Many private loan lenders are willing to offer loans up to the cost of attendance. Your cost of attendance (COA) can be viewed on your MyNIU Campus Finances page. Our office will process your private loan; however, we will not certify private loans for an amount that exceeds the COA minus other financial aid. We strongly suggest you consider only borrowing what you need.

Required Disclosures

Pursuant to the Consumer Financial Protection Bureau’s regulations, below are required disclosures. Please visit the lender websites to find specific rates and information.

• Loan interest rates vary by lender. The interest rates are typically variable and may be based on either the LIBOR or Prime rate.
• Loan fees vary by lender. An origination fee is the amount of money that the lender keeps off the top of the loan proceeds. For example, if $1,000 is borrowed with a 5% origination fee, the borrower will have $950 disbursed toward their account, as the lender will keep $50. When the loan is repaid, payments are based on borrowing the original amount of $1,000.
• Repayment plans and deferment options vary by lender. Some lenders will allow students to defer payments until after graduation, while others require interest payments while in school. Repayment plans may differ as well.
• Eligibility requirements, such as enrollment status, citizenship status, Satisfactory Academic Progress status, and if valid co-signer is required, will vary by lender.
• Students must complete and submit a Self-Certification form to their lender to finalize their loan. Students will receive this form from their lender.
• Institutional Code of Conduct