Many lenders offer private educational loans to supplement a student’s federal financial aid. Unlike federal loans, the terms of private loans are set by the individual lenders. The interest rate and fees are determined by a variety of factors including, but not limited to, a person’s credit history, credit score, employment, residency, and debt-to-income ratio. A loan applicant may also be required to provide a credit worthy co-signer before a loan is approved.
The interest rates for private educational loans are variable and may be higher than Title IV, HEA program loans. While Federal student loans are required by law to provide a range of flexible repayment options, including income-based repayment plans, income-contingent repayment plans, and loan forgiveness benefits among others, private student loans are not.
Before applying for private loans, students are encouraged to complete a FAFSA to determine eligibility for federal loans and grants. Prospective borrowers should note that the terms and conditions of federal financial aid programs may be more favorable than those of private education loans. Students should also review the Department of Education’s website at https://studentaid.gov/understand-aid/types/loans/federal-vs-private and speak to a Financial Aid Advisor to learn about federal programs before applying for a private educational loan.
If you are interested in learning more about private education loans, please contact the Business Office. For information on specific private loan programs contact the lender of your choice.
Midwestern Career College does not make any recommendations regarding lender selection. Upon request, the college may provide a list of possible lenders. However, the list is not exhaustive and is not meant to indicate rank or preference. Students are encouraged to review any lender’s terms and conditions before making a selection. Lender terms and eligibility criteria are subject to change.
Midwestern Career College adheres to the Code of Conduct as established by the Higher Education Opportunity Act. View Midwestern Career College’s Financial Aid Code of Conduct Policy at: /code-of-conduct-governing-educational-loan-activities/.
Your private education lender may require you to complete a Self-Certification Form for your private education loan. The version the lender provides usually contains pre-populated information specific to you and your loan. Additionally, upon request, the school will provide an enrolled or admitted student a self-certification form for private education loans and the information required to complete the form, to the extent the school possesses the information. A blank form is available at: https://fsapartners.ed.gov/sites/default/files/2023-06/H450PrivateEducationLoanApplicantSelfCertificationForm.pdf
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