We encourage all students to consider using their maximum Subsidized and Unsubsidized Stafford eligibility prior to seeking any alternative loan, as there are many benefits associated with this federal loan program. Due to the variable rates of Private Loans, the Federal PLUS loan may be a better option because of fixed rates.
There are a variety of banks and private lenders who offer alternative loans for financing education costs for undergraduate students and their families. Student Lending Analytics, and Edulender are great resources for comparing private loans based on different sets of criteria if you require assistance with choosing a loan lender. When applying for private loans, students should also consider the overall cost including interest, over the lifetime of the loan. This calculation can be completed using a Loan Repayment Calculator.