University of Houston-Victoria

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Private Loan Programs

Many lenders have private alternative loan programs for students who have borrowed their maximum Federal Title IV Subsidized and/or Unsubsidized annual or aggregate loan limit and still have unmet need for the academic year.  A private loan is provided by a private educational lender and is  issued expressly for postsecondary education expenses to a borrower, regardless of whether the loan is provided through the educational institution that the student attends or directly to the borrower from the private educational lender.

Federal law requires that before a lender may disburse a private student loan to a borrower attending an institution of higher education, the lender must obtain a completed and signed self-certification form from the borrower. The Financial Aid Office can assist with providing the Cost of Attendance, Estimated Financial Assistance, and remaining need which is data required for the Self-Certification form. The lender must provide an Application Disclosure, an Approval Disclosure, and a Final Disclosure to the student.

You can go to the Loan Calculator in Adventures in Education for an example of how much you will have to pay using a standard repayment method.

Private Loan Comparison Questions to Consider:

  • What is the current interest rate?
  • Is this a variable or fixed interest rate loan?
  • What is the maximum loan amount?
  • What are the enrollment requirements to receive a loan?
  • If any, what fees are attached to the loan?
  • Is this a credit-based loan?
  • Is a cosigner optional or required?
  • When does the loan enter repayment?
  • Are deferment options available?
  • Are forbearance options available?

What Students Should Know:

  • The difference between federal and private student loans
  • All the terms and conditions of their loans
  • How to find the entity that holds and services their loans
  • Who to contact with questions or issues
  • Repayment options
  • What to do if they can't make payments
  • The consequences of missing payments
  • The Consequences of default
  • How to get a loan out of default
  • How bankruptcy impacts a loan