Private Loans
Students studying on degree programmes and other certificate programmes and study abroad programmes should be eligible for a private loan.
Before applying for a private loan, students should always exhaust all of their federal loan eligibility. Parents may also want to consider using federal parent loan funds before co-signing a private loan for a student.
As a credit check is required for each private loan taken out, the RNCM recommend that student / parents take out loans to cover a full academic year rather than on a termly basis. This will keep your credit file in better shape.
We recommend that students apply for a private loan with a co-signer. A co-signer assumes responsibility for a loan should the borrower fail to repay. Having a co-signer on the loan often results in a lower interest rate and reduced fees.
Right to Cancel
Borrowers and /or co-signers have the right to cancel or rescind a loan offer within 3 business days after receipt of Final Disclosure. During this time, the lender cannot disburse loan funds. This cancellation period cannot be waived in order for funds to disburse more quickly. This may cause a delay in the disbursement of loan funds to your student account. Be sure to apply several weeks before funding is needed.
Anticipated Loans on Your Bill
Keep in mind when calculating how much to borrow that the gross amount of the loan may be reduced by fees charged by the lender. For loan types other than Parent PLUS or Grad PLUS, if your loan is in “anticipated” status (not yet disbursed) on your bill, the amount indicated is the gross amount. Therefore, the amount you owe may actually be higher than what is reflected on your bill.
Advice
The Financial Aid Office suggests that you fully research the loan and lender that best suits your needs. It is a good idea to compare the benefits and costs of several supplemental loans before you apply, as the loan terms can vary. Also remember that it is always in the best interest of students and parents to explore federal student and parent loan options before applying for private loan products.
Below are some questions that you may want to ask your lender or consider when choosing a lender/loan option:
- Do you charge any fees for disbursement, repayment, deferments?
- Are the fees deducted from the loan disbursements or added to the total loan amount?
- Are in school payments required?
- What is the interest rate?
- Is the interest rate variable or fixed?
- When is interest capitalized?
- Do you offer flexible repayment options?
- Can I request a deferment or forbearance after I leave school and enter repayment?
- Do you offer interest rate reductions for auto-debit payments?
- How much experience do your customer service representatives have?
- Can I talk to a person, not an automated system? How long is the wait time typically?
- Can I email an account representative if needed?
- Is there an online application process and instant approval?
- Do you have online account access?
- How long have you been lending loans?
- Do you have a history of selling loans?
- What are my options for loan consolidation?
