Private Loans

What Is a Private Loan?

Private education loans are non-federal loans issued by third-party lenders, such as banks, credit unions, and lending companies, to help students cover educational costs not fully met by federal aid, scholarships, or other funding sources. Unlike federal loans, private loans are credit-based. Your interest rate, repayment terms, and even your eligibility depend on your individual creditworthiness, or that of a cosigner.

Private loans do not carry the same borrower protections, repayment flexibility, or forgiveness options that come with federal loans. For that reason, they are best considered after you have maximized your federal aid eligibility and explored all other funding sources. That said, for students who have reached their federal borrowing limits or who need additional funding to cover their full cost of attendance, private loans can be a legitimate part of a broader financial plan, as long as you go in fully informed.

Federal Loans vs. Private Loans: Know the Difference

Before applying for a private loan, it’s worth understanding exactly how it compares to federal borrowing:

Feature	Federal Loans	Private Loans
Based on financial need	Yes	No
Requires credit check	No (except PLUS Loans)	Yes
Interest rates	Fixed	Fixed or variable
Subsidized interest available	Yes (subsidized loans)	No
Income-driven repayment plans	Yes	Rarely
Loan forgiveness options	Yes (e.g., PSLF)	Rarely
Deferment & forbearance	Standardized by federal law	Varies by lender
Borrower protections	Strong	Limited

What to Do Before You Apply

Taking a few steps before applying can save you significant time, money, and stress:

• Complete the FAFSA first. Federal aid, including grants, subsidized loans, and Work-Study, is only accessible after submitting the FAFSA. Do not leave federal funding on the table by skipping this step.
• Review your full federal aid package. Once you receive your financial aid offer from University of Western States, review it carefully before turning to private options. If you have questions about your federal borrowing limits or what is included in your offer, contact our financial aid office first.
• Research lenders independently and carefully. We have partnered with ELMSelect, an independent unbiased consolidator of private loans. They are a good place to start, although you can use other resources available to research private loans. It is essential that you compare lenders on an individual basis, looking at interest rates, fees, repayment terms, grace periods, deferment and forbearance options, cosigner requirements, and any special programs or benefits offered. Loan terms vary significantly from lender to lender, and what works best for one student may not be the right fit for another.
• Know your borrowing limit. You can borrow up to your Cost of Attendance minus any other financial aid already received. Borrowing more than you need means more debt to repay, and private loan interest accumulates quickly.

Eligibility Requirements

Private lenders set their own eligibility criteria, but most will require:

• Enrollment: You must be enrolled at least half-time in a degree-seeking program at University of Western States.
• Creditworthiness: Lenders will review your credit history. If you don’t meet the lender’s credit requirements, applying with a creditworthy cosigner, typically a U.S. citizen, national, or permanent resident, may help you qualify or secure a better interest rate. Some lenders offer cosigner release options after a sustained period of on-time payments.
• Loan amount: The maximum you can borrow is your Cost of Attendance minus all other financial aid received for the term.

For international students: Most private lenders require an eligible U.S. citizen or permanent resident cosigner. Some lenders may also require a valid U.S. Social Security number. Please contact our financial aid office if you have questions about your eligibility.

Finding a Lender: Preferred Lender List

To help students navigate the private loan market, The Chicago School has partnered with ELMSelect, an independent resource for private loans, as a starting point for your research. This list was developed through a formal review process in which we solicited information from a wide range of lenders and evaluated them based on factors including customer service availability, interest and approval rates, borrower eligibility requirements, and special programs or benefits offered.

A few important things to know about this list:

• It is a starting point, not a limitation. This resource in no way restricts your ability to borrow from any lender of your choosing. It is provided to give you a set of vetted options to research further, not to direct you toward any particular lender.
• It does not guarantee approval. The list is a research tool. Individual eligibility is determined by each lender based on their own criteria. Contact any lender directly to confirm your eligibility before applying.
• We do not endorse specific lenders. University of Western States does not receive any benefit from lenders for inclusion on this list and prohibits co-branding with lenders. Our only goal is to give you a useful place to start.