Private student loans are loans from banks or lenders that help pay for school costs not covered by financial aid.
Students with little or no credit usually need a co-signer, like a parent, family member, or friend. Having a co-signer can increase the chances of getting approved and may lead to a lower interest rate.
Families may choose private student loans instead of PLUS loans for a few reasons:
- Parents may not meet credit requirements, but another person can co-sign the private loan.
- Some private loans allow students to take fewer classes, while PLUS loans require at least half-time enrollment.
- Families may prefer the student to take the loan instead of the parents.
- Families may have exhausted their eligibility for federal PLUS loans.
- Some private loans can be used to pay past-due school bills.
Private loans can help pay for school, but you may also qualify for federal student aid. Federal loans are often cheaper and have better terms than private loans.
Some private lenders may require you to make monthly payments while you’re still in school. They may also look at how much you’ve borrowed in federal loans when deciding how much you can borrow from them.
For more information about federal loans and how to apply, visit hofstra.edu/learnaboutloans.
ELM Resources is a not-for-profit organization that supports the student loan industry by providing a secure, open system that connects schools and lenders and enables efficient data exchange and loan processing.
ELM also offers ELM Select, a tool schools can use to display lender options and help students compare and choose loans that best fit their needs. More than 1,800 campuses use ELM Resources to send and receive alternative loan data with lenders of their choice.
Hofstra provides a list of lenders that have historically worked with its students and families, displayed through ELM Select.
Hofstra University does not prefer, recommend, promote, endorse, or suggest any of these lenders. You are not required to borrow from any of the lenders appearing on these lists and there is no penalty for selecting a different lender, if you prefer.