Private Loans
ABOUT PRIVATE LOANS
Private student loans (also known as alternative loans) are non-federal loans, made by a lender such as a bank, credit union or state agency. They typically do not offer many of the benefits that Federal student loans include (such as fixed rates, income-based repayment plans, and various loan forgiveness programs). In many cases, private loans may be more expensive than Federal student loans. A student should NEVER consider borrowing from private loan program until they have exhausted all their Federal Loan options first.
Dependent Undergraduate students applying for private loan financing with a parental cosigner are advised to first investigate the options offered by the Federal PLUS program before applying for a private loan. A detailed comparison between the PLUS and Private loan programs can be viewed on the Direct Loan Comparison Worksheet PDF.
SELECTING A PRIVATE LOAN PROGRAM
Students may view and compare some of the private loan programs through which Florida Atlantic University students have received funding via the ELMSELECT private loan search and comparison tool. When using ELMSELECT, students are recommended to use the "Sort and Filter" options on the left sidebar to identify the loan programs with the terms and qualifying criteria that meet their needs. Neither Florida Atlantic University nor the FAU Office of Student Financial Aid promote, endorse or recommend any of these loan products or lenders by including them on the list. Though the FAU Office of Student Financial Aid is able to process private loans with all private loan providers, processing is most efficient with ELM participating lenders. If your preferred lender does not appear on the list provided, you are advised to contact them to confirm they are an ELM participant.
Some factors to be considered when comparing private loan products
- Have an idea of what rate you will qualify for BEFORE you apply.
- Compare rates from different lenders
- Focus on the APR.
- Find out about any fees the lender may charge to originate the loan.
- Ask about interest capitalization
- Ask about borrower benefits
REMEMBER TO ONLY BORROW WHAT YOU NEED!
APPLYING FOR A PRIVATE LOAN
FAU LOAN PERIODS
When applying for an private loan, the lender will ask that you supply them with the loan period (also called period of enrollment) you are requesting the loan for. Below is a list of valid FAU loan periods. The loan period you specify should be ONE of these:
| Enrollment Period | Dates |
|---|---|
| FALL 2024 THRU SPRING 2025 | 08/10/24 - 04/30/25 |
| FALL 2024 ONLY | 08/10/24 - 12/11/24 |
| SPRING 2025 ONLY | 12/14/24 - 04/30/25 |
| SUMMER 2025 ONLY | 05/03/25 - 08/01/25 |
| FALL 2023 THRU SPRING 2024 | 08/12/23 - 05/03/24 |
| FALL 2023 ONLY | 08/12/23 - 12/15/23 |
| SPRING 2024 ONLY | 12/16/23 - 05/03/24 |
| SUMMER 2024 ONLY | 05/04/24 - 08/06/24 |
PLANNED ENROLLMENT AND HOUSING
In order to process a private student loan, Florida Atlantic University will need information regarding your planned enrollment and housing status for the loan period you have specified. FAU will normally obtain this information from your Student Aid Report, which is created after you file a Free Application for Federal Student Aid (FAFSA). If you are requesting to be processed for a private student loan and do NOT have a Student Aid Report on file with Florida Atlantic University for the loan period you are requesting, you MUST submit a Statement of Planned Enrollment and Housing for Alternative Loan Processing (number 3 under Loan section).
PRIVATE EDUCATION LOAN APPLICANT SELF-CERTICATION FORM AND FAU COST OF ATTENDANCE
Due to the enactment of new regulations (Title X - Private Student Loan Transparency and Improvement Act of 2008), a student applying for a private educational loan is required to complete the Private Loan Self Certification Form. This form must be submitted directly to the lender. To complete this form, information regarding FAU cost of attendance must be provided. View information regarding the total cost of attendance at FAU.
IMPORTANT NOTE ON PRIVATE STUDENT LOAN DISBURSEMENTS
The enactment of the new regulation (Title X - Private Student Loan Transparency and Improvement Act of 2008), gives the borrower a three days of recession period. During the recession period the borrower can cancel the loan and the lender cannot disburse the loan fund. The recession period starts when the lender finalizes the loan processing and puts the loan status in ready for disbursement status.
In some cases, private student loans are disbursed to FAU as paper checks made co-payable to FAU and the student. The student will need to endorse and return the paper check to FAU. Upon the receipt of the endorsed paper check, FAU will process it thru the disbursement process.