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Students

Enrollment Management

Private Loans

Important Reminder: Students are strongly encouraged to exhaust all federal and state financial aid options before considering a private loan. Federal loans often provide lower interest rates, borrower protections, and flexible repayment options that are not available through private lenders. File a FAFSA to determine eligibility for federal and state aid programs before applying for a private loan.

What Are Private Loans?

Private loans are credit-based educational loans offered by private lending institutions. They are not part of the federal or state student loan programs and do not require completion of a FAFSA. Private loans may help cover educational expenses not met by other forms of aid.

Key points to consider:

  • Interest rates are usually variable and may be higher than federal loan rates.
  • Terms and conditions vary by lender, and repayment options may be limited.
  • Most lenders require a credit check and may require a credit-worthy cosigner.
  • Your eligibility is typically based on the cost of attendance minus other financial aid received.
  • Some lenders require half-time enrollment and/or Satisfactory Academic Progress (SAP).

Truth in Lending Act (TILA)

Under the Truth in Lending Act of 2009, lenders must provide multiple disclosures and collect a Self-Certification Form. These requirements can delay loan disbursements. Students should begin the application process at least 30 days before the payment deadline to avoid late payment issues.

Choosing a Lender

51³Ô¹ÏÍø A&M University-Kingsville uses a Historical Lender List and does not endorse or recommend any specific private lenders. You are free to select any lender that offers private loans. To help you compare terms, you may use the loan comparison tool. Points to consider when evaluating lenders include:

  • Interest Rates – Variable vs. fixed, and whether interest capitalizes.
  • Fees – Based on your credit history (and that of a cosigner, if applicable).
  • Borrower Benefits – Vary by lender and may include autopay discounts.
  • Repayment Terms – Some lenders require in-school payments, while others defer until after graduation.
  • Eligibility Requirements – Enrollment status, GPA, and satisfactory academic progress.

 Application Process

  1. Select a lender and apply directly through the lender’s website.
  2. Complete a credit review and provide any required documentation (including the Applicant Self-Certification Form).
  3. If approved, your lender will send a loan certification request to the Financial Aid Office.
  4. The Financial Aid Office will review eligibility, certify the loan if requirements are met, and return the certification to the lender. There is a 9-day right-to cancel- where the borrower may request cancellation of the private loan
  5. Funds will be disbursed to the school (in accordance with the lender’s schedule) after the 9-day period expires.

Processing Time: Please allow 4–6 weeks from the time of application to disbursement.

Additional Notes

  • Students with a GPA below 2.0 or a completion rate below 67% should contact the Financial Aid Office before applying.
  • Not all loans requested will be certified; the school reserves the right to deny certification if eligibility requirements are not met.
  • Students are responsible for reviewing all loan terms, conditions, and repayment obligations before borrowing.