Private Student Loans
Private student loans are made by private lenders to students and most require credit worthy cosigners. These loans may be more expensive than Federal Direct PLUS loans and students should first maximize any eligibility under the Federal loan programs. Private loan fees and interest rates vary among lenders. All lenders will review the borrower's and cosigner’s credit history.
The Federal Reserve and Department of Education have recently implemented new rules and regulations that impact student borrowers who use private educational loans. Students should allow at least two weeks for the total processing of a private loan and follow their lenders instructions carefully to avoid delays.
There are many reputable private education loan companies. The following lender tools are good places to start the search. Many students start by using the Great Lakes loan selection tool FASTChoice. These private loan comparison tools empower you to take control of the process and make an informed decision in selecting the best private loan for your individual situation. FASTChoice, powered by Great Lakes loan guarantor and processer, provides general eligibility requirements, interest rates, loan limits, and borrower benefits on specific lenders.
In the current economic and credit market difficulties, private educational loan companies are in a state of change. Make sure to check all lenders' websites for the most current information regarding credit criteria and interest rates.