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If you aren’t eligible for federal aid or weren’t awarded as much federal aid as you actually need, you or your parents might consider taking out a private student loan through a bank, credit union, or other lender.

You should always consider federal student loans before private loans:

• Federal loans are usually much more affordable.
• Federal loans allow you to put off repaying them until after you graduate.

Before you apply for a private loan, complete your FAFSA to see if you qualify for a federal loan.

Eligibility requirements

Requirements vary based on the lender, but in general you must:

• Have a good credit history or a co-signer with a good credit history
• Be enrolled at least half time
  • Undergraduate half time: six credit hours
  • Graduate half time: four credit hours

What your loan pays for

Remember, you can borrow only up to your estimated cost of attendance, minus any other financial aid you receive. You can use private student loans to pay for your tuition, fees, room and board, books, and other education-related expenses. Any funds that remain after these items are paid will be refunded to you.

Learn strategies to borrow less

Repaying your loan

Depending on the terms of your loan, you may be required to start repaying the loan before you finish your education.

Apply for a private loan

You should apply for a private loan as soon as you know you’ll need additional funding.

You may be able to apply for a private student loan to cover costs you’ve already paid. All retroactive loan requests are approved on an appeal basis only. Check with your lender to see if it will allow retroactive loans before contacting Student Central to discuss whether this option is right for you.

Beginning ten days after IU has certified your loan, funds will be available as early as your lender allows prior to the start of the loan period.

Loan periods

You’ll need to know the period of enrollment covered by the loan. Loan periods are:

Know your rights

Lenders who provide private loans must comply with these Truth in Lending Act requirements:

• Your lender must provide three separate loan disclosures to you:
  • One when you apply
  • One when your loan is approved
  • One before your funds are made available
• Three business days must pass between the time you receive the final disclosure and the time your funds are made available.
• You must submit a signed self-certification form to the lender before your funds can be made available.

Your lender should provide you with a self-certification form that includes your application ID. You’ll need to know your cost of attendance and estimated financial assistance. If you receive financial aid, this information is available through in .