Graduate Private Student Loans
Private Loan Benefits:
- Borrow up to the true cost of your education
- Fast eSignature process
Private student loans are a great grad school financing option that can help cover additional expenses above and beyond federal financial aid. Graduate private student loans can be used to pay for normal tuition expenses, as well as books, supplies, housing expenses, school fees, transportation, and more.
What makes an graduate private student loan different?
All private student loans require a credit check for the primary borrower. Generally, a co-signer is required on the application. Adding a credit worthy cosigner will help increase the chances for approval and could lower the interest rate on the loan. Private student loan interest rates are variable and based on the Prime or LIBOR index plus a margin for borrower credit.
A graduate private student loan can cover up to the full cost of your education and is usable for any education-related expenses. You can apply for a private loan at anytime during the school year.
The chart below illustrates the primary similarities and differences between federal and private student loans. We always recommend that borrowers exhaust their federal aid before taking out an undergraduate private loan.
|Private Student Loans||Federal Stafford|
|FAFSA required||In some cases||Yes|
|Yearly Borrowing Amounts||Up to the cost of education||Capped by grade level and status of the student|
|Interest rate||Prime or LIBOR plus or minus a margin, based on credit evaluation||Fixed rates at 6.8% (3.4% for subsidized undergraduate borrowers)|
|Disbursement||Check sent directly to your school||Check sent directly to your school|
|Deferment||No payments until after graduation||No payments until after graduation|
|Able to Consolidate||Yes||Yes|
Graduate Private Student Loans Fill the Gap
We always recommend that borrowers maximize their federal aid first. However, in most cases there is a substantial amount of unmet financial need even after federal aid is exhausted. Private student loans are a smart way to help fill that gap and pay for the true cost of an education.
Private student loans have great benefits:
- Up to 100% of your cost of attendance minus other aid
- No payments until after graduation