Loans: Guide to Private Education Loans

Many private lenders offer private education loans to supplement federal eligibility. Private loans are credit-based loans applied for through individual lenders that help students “bridge the gap” between their awarded financial aid and any additional amount they feel may be needed to help achieve their educational goals.

Approval for private loans depends largely on the credit score of the borrower (and cosigner). Many students, particularly undergraduate students, will likely need to find willing, creditworthy individual(s) to cosign their private loan applications to increase the likelihood of being approved and getting the best terms.

While private loans typically do not offer rates and repayment terms that are as favorable as those offered by the Federal Direct loan program, some borrowers may be able to obtain a private loan with a lower interest rate than the Federal Direct Parent PLUS or Graduate PLUS loans. It is the responsibility and choice of the borrower (and cosigner) to make the best personal financial decision based on their circumstances.

Who Should Apply for Private Loans?

Private education loans can be an important source of funding for Eastern Kentucky University students in any of the following situations:

Student is ineligible for federal student loans. May be due to failure to maintain Satisfactory Academic Progress, less than half-time enrollment, student reached federal aggregate loan limit, etc.
Student is in need of funding beyond that which federal loan programs permit during an academic year (Note: private loans combined with other financial aid cannot exceed a student’s estimated cost of attendance).
Student owes a balance to the university from a previous term.
Student (and cosigner) may be able to obtain a lower interest rate on a private loan than a Federal Direct Parent PLUS or Grad PLUS loan.

Review Private Loan Lenders

NOTE: Borrowers are free to choose any lender even if they are not on this list. Neither Eastern Kentucky University nor Big E Central benefits from a borrower’s choice of lender.