Private Loans
Private loans are designed specifically for students and offer competitive variable or fixed rates. Loan approval is based on a student’s overall credit profile. A co-signer is recommended and may be required.
Private Loans vs. Federal PLUS Loans for Parents
The decision of whether or not to borrow additional loans and which program to use is a difficult one for some families. Before making the decision, the Undergraduate Financial Aid Office encourages families to consider the differences between private and Federal PLUS Loans.
Choosing a Private Loan Lender
The first step in borrowing a private loan is to apply with a lender. Private loans for students have similar terms and conditions; however, there can also be important differences that may affect the overall cost of borrowing. It can literally pay to get started early by comparing lenders and determining the loan attributes that matter most to you.
Timing and Eligibility
Federal regulations require lenders to provide multiple loan disclosures, a Self Certification Form and a fixed rescind period. These regulations add significant time to loan processing and disbursement, so allow plenty of time when considering private loan options.
Some lenders require students make Satisfactory Academic Progress as defined by the Department of Education, be enrolled at least half-time (six credits each semester), or be currently enrolled. If you have been notified or have reason to believe that you are not meeting any of these requirements, please contact the lender before submitting an application to determine if you are eligible for their loan program.
Loan Fees
Some private loans are subject to various types of fees.
You may want to ask lenders...
- What, if any, fees are associated with my loan and how will this affect the amount of my loan proceeds?
Customer Service
Your relationship with your private lender will span several years. Both during school and after graduation, you will undoubtedly have questions concerning your private loan funds or payments that are best answered by your lender. It is therefore important that you work with an organization committed to providing good customer service.
You may want to ask lenders...
- When are customer service representatives available to answer questions about my loans?
- Will I have online access to my loan information?
- How quickly will my loan funds arrive on campus?
- Do you send loan funds via EFT (electronic funds transfer) or by paper check?
Repayment
Repaying your private loan is an important obligation. It is critical that you understand what will happen to your loans upon graduation or if you cease to be enrolled at least half-time (defined as six credits per semester).
Lenders offer a variety of incentives and benefits to borrowers to encourage timely and complete repayment. These benefits are typically tied to "on-time payments" and/or "automatic (auto-debit) payments".
You may want to ask lenders...
- What repayment benefits do you offer and what is required of me to ensure I receive and continue to receive any benefits?
- If I lose my repayment benefit(s), are they recoverable?
- If so, how are they recovered and when would my benefit(s) be reinstated?
- What percentage of your current borrowers are receiving repayment benefits?
- How many days beyond the payment due date can my payment be received and still be considered "on-time?"
- If I elect to have my loan payments automatically debited and there are insufficient funds in my account on the payment due date, what happens?
Timing and Eligibility
Timing and Eligibility
Federal regulations require lenders to provide multiple loan disclosures, a Self Certification Form and a fixed rescind period. These regulations add significant time to loan processing and disbursement, so allow plenty of time when considering private loan options.
Some lenders require students make Satisfactory Academic Progress as defined by the Department of Education, be enrolled at least half-time (six credits each semester), or be currently enrolled. If you have been notified or have reason to believe that you are not meeting any of these requirements, please contact the lender before submitting an application to determine if you are eligible for their loan program.
Loan Fees
Loan Fees
Some private loans are subject to various types of fees.
You may want to ask lenders...
- What, if any, fees are associated with my loan and how will this affect the amount of my loan proceeds?
Customer Service
Customer Service
Your relationship with your private lender will span several years. Both during school and after graduation, you will undoubtedly have questions concerning your private loan funds or payments that are best answered by your lender. It is therefore important that you work with an organization committed to providing good customer service.
You may want to ask lenders...
- When are customer service representatives available to answer questions about my loans?
- Will I have online access to my loan information?
- How quickly will my loan funds arrive on campus?
- Do you send loan funds via EFT (electronic funds transfer) or by paper check?
Repayment
Repayment
Repaying your private loan is an important obligation. It is critical that you understand what will happen to your loans upon graduation or if you cease to be enrolled at least half-time (defined as six credits per semester).
Lenders offer a variety of incentives and benefits to borrowers to encourage timely and complete repayment. These benefits are typically tied to "on-time payments" and/or "automatic (auto-debit) payments".
You may want to ask lenders...
- What repayment benefits do you offer and what is required of me to ensure I receive and continue to receive any benefits?
- If I lose my repayment benefit(s), are they recoverable?
- If so, how are they recovered and when would my benefit(s) be reinstated?
- What percentage of your current borrowers are receiving repayment benefits?
- How many days beyond the payment due date can my payment be received and still be considered "on-time?"
- If I elect to have my loan payments automatically debited and there are insufficient funds in my account on the payment due date, what happens?
List of Private Loan Lenders
The links below provides information for unaffiliated lenders that we have determined provide students with funding stability, competitive interest rates, borrowing options for non-traditional students and electronic funds transfer.
The lenders noted therein are not endorsed by St. Thomas. Furthermore, St. Thomas does not guarantee the lenders listed will provide the best borrower benefits to you. Remember, St. Thomas will process a private loan from any lender you choose, but it is your responsibility to research the options available to you.
Private Loans for Parents
Some lenders offer private loans for parents, family members or other individuals to help pay for a student’s education. Consider this fairly new borrowing option carefully, as only the parent or third party is responsible for repaying the loan. Compare repayment terms, postponement options and the cost to borrow along with the lender’s stability and reputation.