Private or alternative student loans are not controlled by Title IV federal aid regulations and do not have government subsidies. Loans of this type usually have terms less favorable than federal loans and should only be considered as a last resort. Many lenders provide such loans and each may offer different benefits and incur vastly different costs, including interest rates.
Most of these loans will require credit-worthy cosigner to act as guarantor on the loan. In fact you may be approved or receive better terms based on the credit-worthiness of your cosigner. A good cosigner is a friend or family member who is steadily employed with sufficient income to meet obligations; is not overextended on credit; and has no serious derogatory items on credit history.
Please read carefully all disclosures sent by any lender prior to accepting funds. Use extreme caution when taking a loan of this type. Some of these loans do not come through the Financial Aid Office and may offer more funding than is truly needed. Remember, these are loans which must be repaid by you or your cosigner.
For more information contact the Financial Aid Office.