Overview
Private (alternative) loans are nonfederal loans, made by a lender such as a bank, credit union, state agency or other entity.
How are private loans and federal student loans different?
The terms and conditions for private loans are set by the lender, not the federal government. While private loans have less regulations and academic requirements, most private loans require a credit check to be approved. Lenders may also require a cosigner in order to approve a loan or provide the best interest rate possible.
The major benefit of federal student loans is that loan repayment is delayed while in school, and you may qualify for income based repayment plans and loan forgiveness programs. Most private loans do not offer income-based repayment. Some alternative education loans may require payments while you are still in school.
Is a private loan right for me?
A private loan may make sense for you if you are unable to qualify for federal student aid (which includes federal loans). Before accepting private loans, you should diligently explore scholarships and other funding sources. You can learn about more ways to cover educational costs on our Ways to Pay page.
Where can I get a private loan?
Santa Fe College is not permitted to recommend any specific lender for private education loans. If you feel that a private loan may be best for you, FastChoice is an online, lender-neutral platform that displays a cumulative list of lenders and education loan products that students can use. These lenders have not been ranked, and are presented in no particular order.