Private Education Loan Information
Private education loans are non-federal loans issued by private banks, credit unions, and state-based agencies to help students and families cover educational costs not fully met by federal aid. These loans require a credit check, may require a co-signer, and feature fixed or variable interest rates. Private loans do not offer federal protections or forgiveness and are typically considered only after all federal aid options have been explored.
Important Considerations
Before pursuing private loans:
- Complete the FAFSA to determine your eligibility for federal grants and loans.
- Explore all federal aid options, which often offer more favorable terms and borrower protections.
- Consult reliable, independent resources to make informed decisions about loan types and lenders.
Recommended resources include:
- Federal Student Aid: Federal vs. Private Loans
A side-by-side comparison from the U.S. Department of Education, covering repayment, interest rates, borrower protections, and eligibility.
Visit Federal Student Aid - FinAid.org: Private Student Loan Guide
A student-focused guide including lender comparison tools, credit tips, application timelines, and key borrowing considerations.
Visit FinAid.org
Comparing Loan Options
| Loan Features | Federal Loans | Private Loans |
|---|---|---|
| Based on Financial Need | Yes | No |
| Requires Credit Check | No (except PLUS Loans) | Yes |
| Interest Rates | Fixed | Fixed or Variable |
| Subsidized Interest | Available (Subsidized Loans) | Not Available |
| Repayment Flexibility | Income-driven plans available | Varies by lender |
| Forgiveness Options | Yes (e.g., PSLF) | Rare |
| Deferment / Forbearance | Standardized by law | Varies by lender |
Apply for a Private Loan
If approved, follow these steps when applying for private loans:
- Research Lenders: Use independent loan comparison tools to evaluate all your private options.
- Apply Directly: Complete your application through the private lender’s website following their required steps.
- School Certification: Once approved, the private lender will contact our Registrar’s Office to certify your enrollment and cost of attendance.
- Plan Ahead: Processing private loans can take 3-4 weeks by your chosen lender. Apply early and stay in contact with your lender to avoid delays.
Private lenders will require the following information before issuing financial aid:
- Enrollment: You must be enrolled at least half-time in a degree-seeking program.
- Credit Check: Private lenders will assess your credit history; a co-signer may be required.
- Loan Amount: You can borrow up to the cost of attendance minus any other financial aid received.
Regulatory Transparency and Consumer Protection
KansasCOM complies with all federal regulations regarding private education loans by:
- Certifying any eligible private loan lender of the student’s choice.
- Ensuring no conflict of interest exists in providing lender information.
- Prohibiting co-branding with lenders (no logos, mascots, or endorsements).
- Annually reviewing student-used lenders and updating available information.
Protect Yourself From Student Loan Scams
You and your family should remain alert to scams related to financial aid and student loans. Scammers may attempt to impersonate legitimate lenders, servicers, or government agencies. You will never be asked to pay for help with federal aid.
- Tip: Be cautious of unsolicited phone calls, emails, or messages promising loan forgiveness or fast approval.
- Verify: Only use trusted sources when applying for or managing your student loans.
For more information, visit Federal Student Aid – Avoiding Scams.
