If you have reached your annual Direct Unsubsidized Loan borrowing limit or if you do not wish to/are not eligible to borrow a federal student loan, a private educational loan program may be available to you to help finance your education.
These private loans are offered by banks or other financial institutions, and the terms tend to be less favorable than the Direct Unsubsidized Loan program but are generally more favorable than credit card terms. Private educational loan programs have a separate application process and must be certified by Indiana Law’s financial aid office.
Securing a private education loan is a function of a good credit rating. A poor credit history could result in not being able to obtain one of these loans. Be sure to obtain a copy of your credit report to identify any items that might need resolution before you apply for a private educational loan.
You can obtain a free annual credit report from any of the three major credit bureaus: Equifax, Experian, and TransUnion. Oftentimes, students will find that they must obtain a cosigner in order to qualify for the most favorable credit terms offered by a private lender.
If your private student loan application is denied, you are encouraged to speak with Paul Leopold, our financial aid director, to explore any other potential funding options.