Private Loans

A private loan, also known as an alternative loan, is a student loan used to pay for expenses associated with attending college including tuition, room, board, transportation, books and miscellaneous expenses.

It is a credit based loan. This means that you must be approved for the loan based on a review of your credit history.

The interest rate is based on the credit history of the applicant. The rate is usually variable.

Private loans allow for a cosigner to be added to the application

Most younger students would need a cosigner to get approved for a private loan because they have limited credit history themselves.

An applicant that was originally denied for a private loan on their own could be approved as long as their cosigner meets the credit requirement.

The cosigner is responsible to pay the loan back if the primary borrower does not pay the loan back.