Private Loans

Private loans are made and backed by banks, credit unions or state-based organizations with terms and conditions set by the lender. Eligibility requires completion of the Free Application for Federal Student Aid (FAFSA) annually and a review of financial need by your college. The Financial Aid Office at your college or university provides assistance with the private loan application process.

When considering private loans, it’s important to keep a few things in mind:

• Explore federal loans first: If you are eligible for federal loans, you should consider those before taking out private loans. Both types of loans require repayment with interest, but federal loans tend to have lower interest rates, more repayment options and opportunities for loan forgiveness.
• Understand the differences: The Federal Student AID (FSA) website provides a summary chart of the differences among federal student, federal parent and private loans. Review this chart to make informed decisions about your loan options.
• Seek assistance: Your college's financial aid office can guide you through the private loan application process and answer any questions you may have about financial aid. Remember, taking out loans is a significant decision, so it’s crucial to weigh your options carefully and choose the ones that best suit your financial situation and future plans.

For more information on the college financing process, visit the Virginia Student Loan Help website!

Virginia Student Loan Help

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