Loans
Private Loans
A Private Loan is a loan in the student’s name through a private lender. These loans are not loans through the federal government. Most private loans have a variable interest rate and require that the student obtain a creditworthy co-signer to be approved. Concordia College encourages all families to take advantage of eligible federal loan programs before pursuing a private loan.Information:
Concordia College encourages all families to take advantage of eligible federal loan programs before pursuing a private loan.
Loan Approval:
Loan Approval on Private Loans is based on credit-worthiness. The credit check process is based on the credit-worthiness of the borrower and co-signer. This loan may have a debt to income ration requirement and may require borrowers or co-borrowers to submit income verification or documentation.
Loan approval requires that a lender pull a credit report. If you are comparing rates between lenders it is important that you do this in a short time frame, generally under 30 days, to avoid the multiple credit hits having a negative impact on your credit report.
Interest Rates and Fees:
Interest rates and loan fees vary from lender to lender. These rates and fees may be determined by the credit-worthiness of the borrower and co-borrower.
During the application process borrowers will now be given several disclosures providing them information on what rates are available with that lender and disclosures on what your actual interest rate and fees will be. Borrowers and co-borrowers (in some cases) will be asked to sign a loan approval disclosure that indicates the loan rate and fees (if applicable) that a borrower qualifies for verifying that the borrower understands and agrees with the terms of the loan they are taking.
Per Year Maximum:
Total Cost of Attendance- minus students other financial aid. Example: a standard Cost of Attendance for an on-campus student in 2010-11 is $34,295. If the student receives $15,000 in financial aid, the student would be eligible for the difference of $19,295 in a Private Loan. The lender will ask the borrower to complete and return a Self-Certification Form as part of the Private loan process that will provide the
Repayment:
Repayment length and terms vary per lender. Interest accrues while a student is in school. Some programs require students to make minimum monthly payments or interest-only payments while in school. If payments are deferred while a student is in school, make sure to contact the lender to determine when payments will begin after you graduate or leave school.
Historical List of Lenders:
Concordia College maintains a historical list of private loan lenders used by Concordia students in the past four years. Concordia College is providing this list as a service to students. Students are free to select a private loan program that is not on this list. If a student chooses to borrow from a private loan program, the choice of a lender or loan program is entirely the choice of the student. If a student chooses to use a loan program that is not on Concordia’s historical list of lenders, we will process the loan in the same time frame as we would for the loan programs previously used by Concordia students.
