Private Alternative Loans
There is a large number of private commercial education loan options available to assist students and families in meeting college costs. Before you consider a private educational loan (often called an "alternative" loan), we recommend you determine your eligibility for federal student loans, which generally have better terms; more information about federal student loans at www.federalstudentaid.ed.gov.
Just like any other student loan, borrowers should consider a number of factors before applying for a private educational loan and are encouraged to review Division of Financial Aid loan counseling information.
General Information
- Private educational loans are usually higher interest programs with interest that accrues while the student is in school.
- Students (or co-borrowers) must have a good credit history to obtain private educational loans.
- Most lenders require that you be enrolled at least half time in a degree-seeking program (dependent on the lender)Purdue will certify your loan up to the cost of attendance less other aid.
- Depending on the private loan lender, it is possible to apply for private educational loans for prior loan periods (retroactively) after the end of the loan period
Private Educational Loan Programs
Purdue University recommends borrowers compare and research various private educational loan programs available in the marketplace; a good place for research is at www.finaid.org/loans/privatestudentloans.phtml.