External Loans
Private student loans originate with a bank, credit union or online lender — unlike federal student loans that are handled by the federal government.
You can use both federal and private loans to pay for school, but federal loans are usually a better choice. A private loan could be your next option if federal student loans aren’t available to you.
Private student loans can still be a good option if:
You have already completed the Free Application for Federal Student Aid, known as the FAFSA, to see if you’re eligible for federal grants and work-study programs and discovered you are not eligible for anything.
You have already borrowed the maximum in both subsidized and unsubsidized federal student loans.
You have good credit (a credit score of 690 or above) or a co-signer who does. Most private student loan borrowers have a co-signer.
You borrow only what you can pay back.
Best for Private Student Loan
Best for Private Student Loan + Part-time Students
Best for Private Student Loan + International Students
- Borrow only how much you need.
- Exhaust all other options before taking a private loan. (Get max amount of federal aid possible from the FAFSA)
- You’ll need to find a cosigner.
- Do some ‘shopping’ for the best lender option available.
- Interest will accrue and could fluctuate throughout the life of the loan.
- Get information about repayment terms and benefits.
- Develop a payment plan.
- Use excess cash wisely as this money will need to be paid back.