Private Education Loan Overview
Private (alternative) loans are offered by various banks, lending institutions, credit unions, and state agencies. The borrower is the student and in most cases a credit-worthy co-signer is required. These loans are not associated with the federal government.
It is recommended that students and families use federal loan options (e.g., Direct Stafford and Direct Parent PLUS) before using a private loan.
Interest rates are typically variable and interest will generally start to accrue after the loan funds are disbursed to the school. Depending on the lending institution, interest payments may be required while the student is enrolled in school. Students who receive the best interest rates typically have good credit or have a co-signer with good credit. Many lenders require that students have a co-signer.
A private loan can be used to cover the cost of education minus all other financial aid for each academic year.
Things to Consider When Selecting a Private Education Loan:
Students and parents should consider the following criteria when analyzing a private loan:
Siena College does not recommend or endorse any specific lender. Students and families have the right and ability to select the education loan lender of their choice.
For a list of lenders who have provided private education loans to our students in the last three years and are planning to provide loans for the 2013-2014 academic year, please visit our Lender Information Page.