Guidelines for Borrowing Private Loans
Although you may find private loans are convenient sources of additional funding for your education, you are encouraged to plan and budget carefully to minimize your reliance on these higher-cost loans. Please review federal and state loan programs first before applying for private/alternative loans. Follow these guidelines:
- Consider other sources of funding besides loans to limit your post-school debt.
- Borrow only what you absolutely need, in order to keep your loan debt at a minimum.
- Before you borrow, estimate both your future earnings and the amount of debt you may be able to realistically afford in your chosen profession after you graduate from school.
- Remember that repaying loans is serious business. If you default on a loan, your ability to obtain a loan for future housing or transportation needs may be negatively affected.
- Read carefully the terms and conditions of your promissory note. You are agreeing to repay the loan with all accrued and capitalized interest and deducted fees according to the terms of the loan company.
- You are responsible for reading and keeping all your records of your private loan. Be sure to contact your lender regarding any changes in your student status.
- You are obligated to repay your private loan regardless of whether you complete your education, are satisfied with your education, or find employment. Generally, private loans go into repayment once you graduate or drop below half-time enrollment status in school.