Private lending institutions offer private student loans as an alternative aid option if additional funding is needed. Before you consider borrowing a private student loan, we recommend you apply for federal student loans, which generally have better terms and could have lower interest rates.
You should consider a number of factors before applying for a private student loan. For your convenience, we have listed several of those factors below:
- Private student loans could have higher interest rate loans with interest that accrues while the student is in school.
- Students must have a good credit history to obtain private student loans. You may need a credit worthy co-borrower to receive a private student loan.
- The interest rate on your private student loan maybe variable and increase over time.
IU Northwest does not recommend any private education loan program. If you need help finding a lender please visit the INvestED Marketplace.