How do private student loans work?
For private student loans, you typically shop around with banks, credit unions and online lenders to find the best overall loan offer. Unlike federal loans, private loans are credit-based, so your eligibility and terms depend on your credit history. If you’re a student with a thin or poor credit file, you could improve your application by adding a creditworthy cosigner.
Organization
Tech Company
Location
Abu Dhabi UAE
Budget
$3900000
Once you’ve gained approval, your lender will certify the funding amount with your college or university. You may be allowed to borrow up to 100% of your cost of attendance minus other financial aid you expect to receive. The funds are usually disbursed directly to the school, with any excess amount credited to you later.
Your private lender may have a loan servicer that manages the repayment of your debt. Keep in mind that private loans have fewer safeguards if you run into trouble after leaving school, so consider them as a supplement to federal loans, rather than a substitute.
How to get a private student loan
Check interest rates and terms online and with your local financial institutions
Consider adding a cosigner to unlock better rates
Weigh secondary features, such as unemployment protections or special discounts
“Test-drive” the customer service teams of your potential lenders with any questions you have
