Private Student Loans
Questions to Answer Before Taking Out Private Student Loans
Taking out a private loan for school is a big commitment that should be considered carefully. To understand the benefits and responsibilities of a private loan, learn as much as you can by exploring the following:
Fill the College Funding Gap with Private Student Loans
You’re excited about going to a great college – but you need to figure out how to pay for it.
Paying for your education is a significant financial commitment. So, before you consider a private loan, make sure you get as much financial aid as you’re eligible for:
- Fill out the FAFSA.
- Apply for all the grants and scholarships available to you.
- From the college
- From New York State – Tuition Assistance Program
- From organizations in your community
- Check your eligibility for the government-subsidized Perkins Loan, awarded to qualified students with a high financial need.
- Consult the Financial Aid Award Letter you receive from your school. If you are eligible and decide to borrow, start with the Federal Stafford Loan with its lower interest rate.
- Get information from your school about eligibility and opportunities in the Federal Work-Study Program, which subsidizes your wages for on-or off-campus work.
- Consider a Federal PLUS loan, an option for parents of dependent undergraduate students and for graduate students.
If after exhausting all of these sources of aid, you find you still have a college funding gap, it is likely the next step is borrowing to make up the difference. You’ll need to take out a private loan.
