A private loan is a last resort and is not recommended. Be sure all other federal loan options have been exhausted before taking out a private loan for school.
SPC requires that U.S. Citizens and/or permanent residents first complete a FAFSA and apply for a Federal Direct Stafford Loan before applying for private loans. Federal Direct Stafford Loans have lower interest rates and offer borrowers better benefits than private loans. See a Plain Language Disclosure for Direct Subsidized Loans and Direct Unsubsidized Loans.
Students are urged to speak with a Financial Assistance Counselor for guidance when considering their loan options.
Private students loans are not guaranteed by the federal government, require a credit check and often a co-signer. Loan terms and conditions vary significantly by lender. Carefully consider your financial needs and then select the loan product that best meets both your individual situation and your financial need.
When researching private loans, you should pay close attention to the borrower benefits, fees, interest rates and repayment options. To calculate the interest, lenders typically use the LIBOR Rate average, Prime Rate, or the 91-Day T-bill.