| You should always use any federal loan eligibility available to you before borrowing a private education loan.|
Alternative or Private education student loans are consumer loans made to individuals to help pay for college. They are provided by for-profit and nonprofit lending organizations and are not backed by the federal government. Lenders offer private education loans with different rates, fees, repayment terms and approval requirements. We suggest that you carefully review each private education loan program to compare the terms and conditions before deciding which loan may be appropriate for your needs.
Most programs allow borrowers to delay payments during school and offer hardship deferments during repayment. These options often increase the total amount you will pay, because interest charges will accrue during deferment periods. Some private education student loans require a cosigner (a person who promises to become legally responsible to pay your debt if you fail to do so). If you are considering a variable rate loan, understand that rate changes may not be in your favor and could result in an increased monthly payment.
Vermont Tech has not reviewed the loan programs for lenders offering alternative or private education loans. If you feel you need to apply for one we suggest contacting your Stafford Loan lender to see if they have a private education loan program. You can also use web based comparison tools to look at different options. Because Vermont Tech does not keep a suggested lender list for Private Education Loans we do not recommend one lender over another. There are a number of third parties that provide lists and comparisons of private loan products. Student Lending Analytics is one such company and provides information as well as tools that may help you choose a private loan lender.
Student Lending Analytics (an independent research group)
SLA Guide to Private Lenders