Private Education Loans

Private education loans are educational loans from private lenders for students whose cost of attendance has not been met by other financial aid. Alternative loans:

• Are more expensive than federal government loans
• Should only be used when all other options have been exhausted (scholarships, grants, work-study, federal loans, etc.)
• Usually have variable interest rates, are subject to credit approval, and are not federally guaranteed
• Use credit scores and other information to determine your eligibility
• May not have the same deferment, cancellation and consolidation benefits available to borrowers of federal loans

If you determine you need an private education loan, you should carefully research and compare the options available from different lenders and select the lender that best suits your needs. The Iowa College Student Aid Commission provides this list containing links to various private education loan lenders. This is not a comprehensive list and you are not required to choose a lender from this list.

• Use this chart to record and compare the options available from different lenders.
• All first-time private education loan borrowers must make an appointment with a Financial Aid Counselor from the Office of Student Financial Aid for private education loan entrance counseling. This is required before the loan is disbursed to the student's account.
• For any subsequent private education loan borrowed, students must complete page 5 of the Private Education Loan Packet and turn it in to the Office of Student Financial Aid.

The University of Northern Iowa Office of Student Financial Aid does not endorse any particular lender for private education loan. Students may select any lender of their choice. The University is not responsible for the terms or conditions of any alternative loan. A private education loan will not be certified for a student until all Stafford loan eligibility has been met.