Private Loans

Private Loans are for students looking to bridge the gap in funding their college education. Private loans are offered through private lenders such as banks, credit unions, and loan companies and may have different requirements, rate, 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. The timeline for processing private loans can vary greatly, taking anywhere from three to eight weeks.

The Financial Aid and Scholarship Office is prohibited by the Department of Education to provide you with information about private loan lenders. The U.S. government's Federal Student Aid website provides a comparison between federal and private loans that might help you decide if a private loan is the right choice for you.

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

• Enrollment Status: Half time enrollment. (six hours for undergraduate or law; 4.5 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

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.