A private loan option
If you aren’t eligible for federal aid or weren’t awarded as much federal aid as you actually need, you or your parents might consider taking out a private student loan through a bank, credit union, or other lender.
You should always consider federal student loans before private loans:
- Federal loans are usually much more affordable.
- Federal loans allow you to put off repaying them until after you graduate.
- You must have a good credit history or a co-signer with a good credit history to receive a private student loan.
- The interest rate on a private student loan is variable and depends on your (or your co-signer’s) credit history.
Before you apply for a private loan, complete your FAFSA to see if you qualify for a federal loan.