Private Student Loans

Introduction to Private Loans

Private Student Loans (also called "Alternative Loans") are funds available to students who are not eligible for financial aid or who may need additional funds to meet education expenses. The maximum amount a student is eligible to receive is determined by the cost of attendance minus financial aid. Students are responsible for finding which company they want to obtain a Private Loan through. These companies vary from Banks to Credit Unions to various Student Loan Servicers. Always remember to be a smart consumer. Private Student Loans should be a last resort to obtain funding for school. It is important to keep borrowing within reasonable bounds. Never borrow more than you believe you will be able to repay

What is a Private Student Loan?

Alternative loans are funds available to students who are not eligible for financial aid or who need additional funds to meet educational expenses. The student’s eligibility is determined by the cost of attendance minus financial aid.

Who needs an Private Student Loan?

Alternative loans are not for everyone. They are expensive and should only be borrowed when all other resources have been exhausted (such as Stafford or PLUS loans).

For example, a freshman dependent student can borrow up to $5,500 under the Stafford Loan Program. If this student is not eligible for grants or other aid, and cannot make up the difference through working, there may not be funds available to cover their charges for registration fees, books, and housing. If no other resources are available, this student may want to consider an alternative loan.

Private Loan Questions to Ask:

  • What is the interest rate and what is it based upon?
  • When does repayment begin?
  • Can the principle and interest be deferred?
  • How much is the loan origination fee?

What do I need to do to get a Private Student Loan?

There are two easy steps to obtaining a Private Student Loan:

  • Firstly, research and apply for a Private Student Loan through a private Lender.
  • Secondly, complete a Private Loan Self-Certification form and send it to the Financial Aid Office at JCHS.

The Private Student Loan cannot be applied to your student account until both of the steps above are completed. If you have any questions pertaining to Private Student Loans please feel free to contact the Financial Aid Office at financialaid@jchs.edu.