Regarding Alternative Educational Loan Options
Private education student loans should only be considered after applying for federal aid and reviewing your offer letter. If students have exhausted all federal, state and institutional forms of financial aid eligibility, but are still in need of additional financial resources – a private loan may represent a viable option.
Private education loans for students and parents of dependent students are funded by a third-party lender (banks, credit unions, national lenders, etc) and are non-federal loans. Private education loans cannot be consolidated with federal student loans.
An important note regarding student loan funding:
At Colorado State University, we encourage you to make informed decisions when taking out a student loan, and to only borrow the amount of funds needed to successfully complete your education.
CSU's Office of Financial Aid has created a historical list of all lenders with whom CSU students have borrowed in the last three (3) years. We encourage you to do some research and explore your available options via this link as you may go to apply for alternative educational loans.
Finding and Comparing Private Student Loans
There are many private loan lenders available to students and parents. Colorado State University does not endorse or recommend any specific private lender over another.
The Office of Financial Aid provides student and parent borrowers with a historical lender list as a starting point for comparing private loans. The lenders listed have been utilized by CSU students and parents within the last three years and are affiliated with Education Loan Management (ELM) and ELMSELECT for certification purposes. Borrowers are free to choose any private education loan product or lender and are not required to borrow from any of the lenders on the list.
CSU also works with lenders who do not use ELM to certify loans. These lenders are listed below. You are not required to borrow from any of the lenders on this list.
| Lender Name | Eligible Students | At Least 1/2 Time | Meet SAP | Degree Seeking | Parent Loan Option |
|---|---|---|---|---|---|
| SELF Loan | Undergraduate | Yes | No | Yes | No |
| UW CU | Undergraduate, Graduate, International | Yes | No | Yes | Yes |
| Bank of North Dakota, DEAL | North Dakota residents only - Undergraduate, Graduate | Yes | Yes | Yes | No |
For assistance in using the comparison tool on the lender list from ELMSELECT, please contact us here in The Hub.
Federal Student Loans vs Private Student Loans
Before borrowing a private education loan, be aware of the several ways they differ from a Federal Student Loan. A few examples are listed below:
- A student without a credit history will require a creditworthy co-signer to receive a private loan approval.
- Interest rates may be fixed or variable and are based on credit approval for a private loan.
- Deferment, cancellation and repayment terms are based on the lender’s discretion.
Be aware of the lender’s terms and conditions before applying for a loan.
Bottom Line: Borrowers should carefully compare loan products to secure the most favorable terms.
What to Consider Before Applying for a Private Education Loan
Maximum Loan Amount
- The maximum a student and parent can borrow is the Cost of Attendance (COA) minus all other financial aid received, including Federal Direct Loans and work-study funds. The student’s estimated cost of attendance can be found on RAMweb via the Menu -> Financial Aid -> Offers and Requirements -> Select the applicable aid year and “Submit” -> then, finally, via the “Offers” link on the right-hand side of the page.
- The maximum a student and parent can borrow is the Cost of Attendance (COA) minus all other financial aid received, including Federal Direct Loans and work-study funds. The student’s estimated cost of attendance can be found on RAMweb via the Menu -> Financial Aid -> Offers and Requirements -> Select the applicable aid year and “Submit” -> then, finally, via the “Offers” link on the right-hand side of the page.
Past-due balance
- Not all lenders will allow you to borrow for a past-due balance. Before you apply for a loan, make sure the lender approves loan applications to cover a past-due balance. You can use our lender list to filter and compare lenders that allow for past-due balance to be covered.
- Not all lenders will allow you to borrow for a past-due balance. Before you apply for a loan, make sure the lender approves loan applications to cover a past-due balance. You can use our lender list to filter and compare lenders that allow for past-due balance to be covered.
Loan Period
- Your loan period’s start and end dates are the months associated with the academic term(s) for which you are borrowing. Private loans for the summer term must always be applied for separately.
- Loan periods cannot overlap academic years (such as a loan from Spring into Fall). If you have questions about term dates, please contact us.
Enrollment Intensity
- Most lenders require that you are enrolled at least half-time in a degree-seeking program in order to obtain a loan. There are some who will provide loans for less than half-time enrollment or for non-degree seeking students. Make sure you know the lenders requirements before applying for a loan.
- Most lenders require that you are enrolled at least half-time in a degree-seeking program in order to obtain a loan. There are some who will provide loans for less than half-time enrollment or for non-degree seeking students. Make sure you know the lenders requirements before applying for a loan.
Satisfactory Academic Progress
- Some lenders require students to be meeting Satisfactory Academic Progress (SAP) in order to be eligible to borrow a private education loan. If you are not meeting Satisfactory Academic Progress with CSU, check with the lender before you apply to know if you are eligible for their loan. You can filter lenders on the lender list to compare loans that do not require you to be meeting SAP to use their loan.
Timeframe for Processing Alternative Educational Loans
The Office of Financial Aid will certify a private loan from any lender you choose. The private loan process can take several weeks from the day the borrower is approved for the loan until the loan is disbursed. We recommend starting the process well in advance of your tuition due date.
Timeline for Private Education Loans:
- Borrower researches private education loan products and determines which loan best fits their situation.
- Borrower completes the lender’s application process.
- The borrower will apply for a loan through the lender’s website and not with the university. The lender (not the university) completes all underwriting and makes the credit decisions.
- During the application process, your lender will require that you submit a Self-Certification form. This form will ask for information about your cost of attendance and estimated financial assistance to help determine the amount of your loan. Borrowers are protected by the Truth in Lending Act (TILA).
- Once approved, the loan application is sent to CSU’s Office of Financial Aid for school certification within 3-5 business days.
- CSU verifies the student meets the lender’s requirements before certifying the loan application. If any issues arise, the student will be contacted.
- Watch your RAMweb account to respond to the required certification questions that need to be resolved before we certify your loan.
- Watch your RAMweb account to respond to the required certification questions that need to be resolved before we certify your loan.
- Once certified with CSU, the loan certification request gets sent back to the lender for final processing.
- The student is notified through their RAMweb confirming the loan has been certified.
- The student is notified through their RAMweb confirming the loan has been certified.
- The private loan lender sends funds to CSU within 7-10 business days, and the funds are directly applied to the student’s account.
- Lending regulations require a “right to cancel” waiting period before sending funds to the university.
- Loan funds will disburse no sooner than 10 days prior to the first day of class.
Loan Cancellation
To learn more about how to cancel your third-party/ alternative/ private educational loan, please check out our webpage on Cancelling Loan Funding.
