A private loan is a private loan made by a lender such as a bank or credit union. Private loans often have higher and variable interest rates, loan fees, more complicated repayment requirements, a credit check, and may not provide the benefits of federal student loans. No private loans, whether student or parent, will be processed without a completed FAFSA on file in the CCSU Financial Aid Office. The Financial Aid Office advises that students and parents utilize federal student and Plus loan eligibility before applying for a private loan.
Most lenders post the application and approval process online. Once the lender has approved the loan and the borrower has completed the necessary documents online, the CCSU Financial Aid Office is notified within 24 to 36 hours to certify that the student is a matriculated student at CCSU. The Financial Aid Office credits the loan to the student's e.Bill account and disbursement of funds is not made until receipt of funds from the lender - usually the first part of the semester. Student borrowers are often required to have a co-borrower for the loan. The terms, conditions, and amount of the loan are determined by the borrower's (and co-borrower's) credit scores and history. The total amount of a private loan may not exceed the student's established Cost of Attendance (COA) budget less any other financial aid posted to the student's account.
The Financial Aid Office does not recommend any private lender or provide a list of lenders.
Borrowers should be diligent in determining financial needs and the amounts of a loan. The "best loan" is not always the one with the lowest quoted interest rate. Usually the best comparative figure to judge which loan may be better is the total cost of the loan when it is paid off. There are several websites that provide private lender information. Beware whenever an upfront fee is required to process the loan application.
Terms and conditions for private education loans may vary greatly according to specific lender guidelines, including:
Fees charged by some lenders may significantly increase the cost of the loan.
Some lenders do not specifically charge fees but roll the costs into the interest rate.
Repayment terms may add to the cost of the loan.
Lenders use their own requirements to determine a student's and parent's eligibility.
Most lenders offer a pre-approval process online to help determine loan eligibility.