PRIVATE LOANS

Start with Federal Aid First

Before considering a private loan, please review the federal loan options included in your Financial Aid Notification. Federal Direct Loans offer fixed interest rates, income-driven repayment plans, and borrower protections that private loans typically do not. For most students, federal loans are a more favorable option, and if you haven’t yet completed the FAFSA, that is the right place to start.

Detailed information on federal loan types, current interest rates, repayment options, and borrowing limits is available at studentaid.gov. If you have questions about your specific federal aid eligibility at The Colleges of Law, our financial aid team is happy to help.

What Is a Private Loan?

Private education loans are non-federal loans issued by third-party lenders, such as banks, credit unions, and lending companies, to help students cover educational costs not fully met by federal aid, scholarships, or other funding sources. Unlike federal loans, private loans are credit-based. Your interest rate, repayment terms, and even your eligibility depend on your individual creditworthiness, or that of a cosigner.

Private loans do not carry the same borrower protections, repayment flexibility, or forgiveness options that come with federal loans. For that reason, they are best considered after you have maximized your federal aid eligibility and explored all other funding sources. That said, for students who have reached their federal borrowing limits or who need additional funding to cover their full cost of attendance, private loans can be a legitimate part of a broader financial plan, as long as you go in fully informed.

Federal Loans vs. Private Loans: Know the Difference

Before applying for a private loan, it’s worth understanding exactly how it compares to federal borrowing:

What to Do Before You Apply

aking a few steps before applying can save you significant time, money, and stress:

Complete the FAFSA first. Federal aid, including grants, subsidized loans, and Work-Study, is only accessible after submitting the FAFSA. Do not leave federal funding on the table by skipping this step.

Review your full federal aid package. Once you receive your financial aid offer from The Colleges of Law, review it carefully before turning to private options. If you have questions about your federal borrowing limits or what is included in your offer, contact our financial aid office first.

Research lenders independently and carefully. We have partnered with ELMSelect, an independent unbiased consolidator of private loans. They are a good place to start, although you can use other resources available to research private loans. It is essential that you compare lenders on an individual basis, looking at interest rates, fees, repayment terms, grace periods, deferment and forbearance options, cosigner requirements, and any special programs or benefits offered. Loan terms vary significantly from lender to lender, and what works best for one student may not be the right fit for another.

Know your borrowing limit. You can borrow up to your Cost of Attendance minus any other financial aid already received. Borrowing more than you need means more debt to repay, and private loan interest accumulates quickly.

Eligibility Requirements

Private lenders set their own eligibility criteria, but most will require:

• Enrollment: You must be enrolled at least half-time in a degree-seeking program at The Colleges of Law.
• Creditworthiness: Lenders will review your credit history. If you don’t meet the lender’s credit requirements, applying with a creditworthy cosigner, typically a U.S. citizen, national, or permanent resident, may help you qualify or secure a better interest rate. Some lenders offer cosigner release options after a sustained period of on-time payments.
• Loan amount: The maximum you can borrow is your Cost of Attendance minus all other financial aid received for the term.

Finding a Lender: Preferred Lender List

To help students navigate the private loan market, The Colleges of Law has partnered with ELMSelect, an independent resource for private loans, as a starting point for your research. This list was developed through a formal review process in which we solicited information from a wide range of lenders and evaluated them based on factors including customer service availability, interest and approval rates, borrower eligibility requirements, and special programs or benefits offered.

A few important things to know about this list:

• It is a starting point, not a limitation. This resource in no way restricts your ability to borrow from any lender of your choosing. It is provided to give you a set of vetted options to research further, not to direct you toward any particular lender.
• It does not guarantee approval. The list is a research tool. Individual eligibility is determined by each lender based on their own criteria. Contact any lender directly to confirm your eligibility before applying.
• We do not endorse specific lenders. The Colleges of Law does not receive any benefit from lenders for inclusion on this list and prohibits co-branding with lenders. Our only goal is to give you a useful place to start.

Additional independent resources for comparing private loans:

• FinAid.org Private Student Loan Guide — lender comparison tools, credit tips, and application guidance
• Federal Student Aid: Federal vs. Private Loans — studentaid.gov/understand-aid/types/loans/federal-vs-private

How to Apply: Step by Step

Once you have done your research and are ready to move forward, here is what the private loan process looks like:

Step 1 — Choose your lender Use ELMSelect and independent comparison tools to select the lender whose terms best fit your situation. Take your time. This decision has long-term financial implications.

Step 2 — Apply directly with the lender. Complete your application through the lender’s own website or application process. Be prepared to provide your enrollment information, income details, and, if applicable, cosigner information.

Step 3 — School certification Once approved, your lender will contact The Colleges of Law to certify your enrollment status and Cost of Attendance. This step confirms that the amount you are borrowing stays within the allowable limit.

Step 4 — Plan ahead for processing time Private loan processing typically takes three to four weeks from application to disbursement. Apply early and stay in contact with your lender throughout the process. Delays can affect your ability to pay your bill on time.

Step 5 — Funds are disbursed Once certified and processed; your loan funds will be sent directly to The Colleges of Law and applied to your student account. If your loan exceeds your direct charges, any remaining balance will be refunded to you to help cover indirect expenses.

Our Commitment to You as a Borrower

The Colleges of Law complies with all federal regulations governing private education loans and is committed to protecting your interests throughout the process:

• We certify any eligible private lender of your choosing; you are always free to select your own lender.
• We do not engage in co-branding with any lender, no logos, endorsements, or institutional affiliations that could influence your decision.
• We ensure no conflict of interest exists in the information we provide about lenders.

Protect Yourself From Student Loan Scams

Unfortunately, student loan scams are real and increasingly sophisticated. As you research private loans, keep the following in mind:

• You will never be asked to pay for help with federal financial aid. If someone asks for an upfront fee to access aid or promises guaranteed loan forgiveness, it is a scam.
• Be cautious of unsolicited contact. Legitimate lenders and servicers do not typically cold-call or email students with urgent offers. If something feels off, trust that instinct.
• Verify before you share. Only use trusted, verified sources when applying for or managing your student loans. When in doubt, contact your lender directly using contact information from their official website, not from an email or text you received.
• Protect your personal information. Never share your FSA ID, Social Security number, or financial account details with anyone you have not independently verified.

For more information on how to recognize and report scams, visit Federal Student Aid’s scam awareness resources at studentaid.gov.

Still Have Questions?

Private loans are a significant financial commitment, and it’s worth taking the time to make sure you fully understand your options before applying. Our financial aid team is here to help you think it through, whether you’re comparing lenders, trying to understand your borrowing limit, or just not sure where to start. The Office of Financial Aid is here to help you explore your options, answer questions, and create a plan that works for you.