Private loans can provide you and your family with another avenue for meeting remaining costs and covering your expected family contribution. Many banks and lending institutions offer student loans privately. The loan will be in the student's name, but most lenders also require a co-signer. Terms and interest rates vary, so borrowers should exercise due diligence and carefully evaluate each private loan offer.
Private loan programs have grown in popularity in recent years. However, we firmly believe that families should exhaust their eligibility for all federal loan programs before turning to private sources. In almost all cases, federal student loans will provide the consumer with more beneficial terms and conditions, including a lower annual percentage rate charged on the principal and fewer and lower fees.