Private loans are through private lenders and banks.  This option is only recommended as an option whenever federal aid and school scholarships are not enough to cover your balance.

Private student loans

Private student loans are to help with your student balance when federal aid and scholarships aren’t enough.

**For many more private loan vendors and more information on private loans,  please visit this website, here.

Please consider these federal loans first:

Federal Student Loans typically have the lowest interest rates and offer more repayment plan options.

Subsidized Stafford Loans

  • Direct Subsidized Loans are available to undergraduate students with financial need.
  • Your school determines the amount you can borrow, and the amount may not exceed your financial need.
  • The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you’re in school at least half-time, for the first six months after you leave school (referred to as a grace period*), and during a period of deferment (a postponement of loan payments).

Unsubsidized Stafford Loans

  • Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.
  • Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
  • You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
  • If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

Federal PLUS Loans

  • The U.S. Department of Education is your lender.
  • You must not have an adverse credit history.
  • The maximum loan amount is the cost of attendance (determined by the school) minus any other financial aid received.
  • If you or your child have already filled out the Free Application for Federal Student Aid (FAFSA®), you can apply for a PLUS loan on
  • If a parent borrower has been approved for a Direct Parent PLUS or Direct Graduate PLUS loan the borrower has to complete the Direct PLUS Loan Counseling and sign the Master Promissory Note requirement at
  • If a Dependent undergraduate (under the age of 24 and not married) student’s parent gets denied on a Parent PLUS Loan the student may then have their unsubsidized loan increased by $2,000 per semester fall/spring. Freshman and sophomore students may borrow a maximum of $6,000 in unsubsidized loan funds in addition to their base amount listed above.

Souces: Sallie Mae Bank. Student Loans.

Federal student aid. An office of the Department of Education.