Private Education Loans

Private Education (alternative) loans are offered by private banks and other lenders to credit-worthy students or to credit-worthy students with a credit-worthy co-borrower. They are not federal loans. Students are encouraged to apply with a credit-worthy co-borrower to enhance their chances of having their loan approved and qualifying for the lowest interest rate possible.

Private Education Loans are considered a “loan of last resort” because their interest rates are typically higher than Subsidized and Unsubsidized Federal Direct Loans.  Also, in most cases, lenders will require a credit-worthy individual to co-sign for the loan in order to qualify for the best interest rate for the loan.  These loans are a good source of educational funding and should certainly be considered before a credit card.

Federal Direct Loans typically have a lower interest rate than private loans, so students are encouraged to complete the Free Application for Federal Student Aid (FAFSA) to determine if they qualify for Federal Direct Loans before applying for private loans.

Before applying for a Private Education Loan, you should

  1. First, accept grant and scholarship awards, as these are both awards that do not have to be repaid.
  2. Second, accept any federal work-study if offered.
  3. Third, accept any federal student loans, as these are loans with low-interest rates, possible subsidized interest payments, and generous repayment plans.

Need more information?

Greenville Technical College does not endorse any Private Education Loan lender. The Office of Financial Aid processes all applications received from eligible lenders.  The lenders listed on Fast Choice typically offer both fixed and variable interest rates.  We want you to have a choice of lenders who offer both on FastChoice.