Private Loans

Several banks and lending agencies offer private educational loans to credit-worthy borrowers or to borrowers with credit-worthy cosigners. Borrowers are encouraged to carefully consider their options and needs before applying for a private loan.

Consider Federal, State And Institutional Financial Aid First

Students are encouraged to submit a Free Application for Federal Student Aid (FAFSA) first to determine their eligibility for federal, state, and institutional aid. The FAFSA is available online at studentaid.gov Western's priority deadline is January 31st of each year.

Students who are not eligible to complete the FAFSA may be eligible to apply for state funding by completing the Washington Application for State Financial Aid (WASFA).

Loans offered through the Federal Direct Loan program are generally more favorable than loans available through private lenders. Information is provided below to assist with comparing the differences between federal loans and private loans. Students must complete a FAFSA and all federal financial aid requirements to receive loans through the Federal Direct Loan program.

Have more questions or need help with your options? Please contact the Financial Aid Services Center and make an appointment with a financial aid counselor. We are happy to help!

Use the cost of attendance calculator to assist in determining borrowing needs. You may also wish to review the current tuition and fees and on-campus housing and meal plan rates to assist with the budgeting process. You are encouraged to carefully calculate the amount of private student loan needed in order to prevent over borrowing.

Loan terms vary by lender. The terms can significantly affect the amount paid over the life of the loan. Consider terms such as interest rates, loan origination fees, repayment options, cancellation or forgiveness options and approval requirements.

Use a loan payment calculator to estimate the monthly payment and total repayment amounts.

Information Required under Sec. 128(e) of the Truth in Lending Act (15 U.S.C. 1638(e))

e) TERMS AND DISCLOSURE WITH RESPECT TO PRIVATE EDUCATION LOANS.

(1) DISCLOSURES REQUIRED IN PRIVATE EDUCATION LOAN APPLICATIONS AND SOLICITATIONS.

In any application for a private education loan, or a solicitation for a private education loan without requiring an application, the private educational lender shall disclose to the borrower, clearly and conspicuously–

• (A) the potential range of rates of interest applicable to the private education loan;
• (B) whether the rate of interest applicable to the private education loan is fixed or variable;
• (C) limitations on interest rate adjustments, both in terms of frequency and amount, or the lack thereof, if applicable;
• (D) requirements for a co-borrower, including any changes in the applicable interest rates without a co-borrower;
• (E) potential finance charges, late fees, penalties, and adjustments to principal, based on defaults or late payments of the borrower;
• (F) fees or range of fees applicable to the private education loan;
• (G) the term of the private education loan;
• (H) whether interest will accrue while the student to whom the private education loan relates is enrolled at a covered educational institution;
• (I) payment deferral options;
• (J) general eligibility criteria for the private education loan;
• (K) an example of the total cost of the private education loan over the life of the loan–
  • (i) which shall be calculated using the principal amount and the maximum rate of interest actually offered by the private educational lender; and
  • (ii) calculated both with and without capitalization of interest, if an option exists for postponing interest payments; the private educational lender may provide) following the date on which the application for the private education loan is approved and the borrower receives the disclosure documents required under this subsection for the loan; and
• (L)that a covered educational institution may have school-specific education loan benefits and terms not detailed on the disclosure form;
• (M) that the borrower may qualify for Federal student financial assistance through a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), in lieu of, or in addition to, a loan from a non-Federal source;
• (N) the interest rates available with respect to such Federal student financial assistance through a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);
• (O) that, as provided in paragraph (6)–
  • (i) the borrower shall have the right to accept the terms of the loan and consummate the transaction at any time within 30 calendar days (or such longer period as
  • (ii) except for changes based on adjustments to the index used for a loan, the rates and terms of the loan may not be changed by the private educational lender during the period described in clause (i);
• (P) that, before a private education loan may be consummated, the borrower must obtain from the relevant institution of higher education the form required under paragraph (3), and complete, sign, and return such form to the private educational lender;
• (Q) that the consumer may obtain additional information concerning such Federal student financial assistance from their institution of higher education, or at the website of the Department of Education; and
• (R) such other information as the Board shall prescribe, by rule, as necessary or appropriate for consumers to make informed borrowing decisions.

(2) DISCLOSURES AT THE TIME OF PRIVATE EDUCATION LOAN APPROVAL.

Contemporaneously with the approval of a private education loan application, and before the loan transaction is consummated, the private educational lender shall disclose to the borrower, clearly and conspicuously–

• (A) the applicable rate of interest in effect on the date of approval;
• (B) whether the rate of interest applicable to the private educational loan is fixed or variable;
• (C) limitations on interest rate adjustments, both in terms of frequency and amount, or the lack thereof, if applicable;
• (D) the initial approved principal amount;
• (E) applicable finance charges, late fees, penalties, and adjustments to principal, based on borrower defaults or late payments, including limitations on the discharge of a private education loan in bankruptcy;
• (F) fees or range of fees applicable to the private education loan;
• (G) the maximum term under the private education loan program;
• (H) an estimate of the total amount for repayment, at both the interest rate in effect on the date of approval and at the maximum possible rate of interest offered by the private educational lender and applicable to the borrower, to the extent that such maximum rate may be determined, or if not, a good faith estimate thereof;
• (I) any principal and interest payments required while the student for whom the private education loan is intended is enrolled at a covered educational institution and unpaid interest that will accrue during such enrollment;
• (J) payment deferral options applicable to the borrower;
• (K) whether monthly payments are graduated;
• (L) that, as provided in paragraph (6)–
  • (i) the borrower shall have the right to accept the terms of the loan and consummate the transaction at any time within 30 calendar days (or such longer period as the private educational lender may provide) following the date on which the application for the private education loan is approved and the borrower received the disclosure documents required under this subsection for the loan; and
  • (ii) except for changes based on adjustments to the index used for a loan, the rates and terms of the loan may not be changed by the private educational lender during the period described in clause (i);
• (M) that the borrower–
  • (i) may qualify for Federal financial assistance through a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), in lieu of, or in addition to, a loan from a non-Federal source; and
  • (ii) may obtain additional information concerning such assistance from their institution of higher education or the website of the Department of Education;
• (N) the interest rates available with respect to such Federal financial assistance through a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);
• (O) the maximum monthly payment, calculated using the maximum rate of interest actually offered by the private educational lender and applicable to the borrower, to the extent that such maximum rate may be determined, or if not, a good faith estimate thereof; and
• (P) such other information as the Board shall prescribe, by rule, as necessary or appropriate for consumers to make informed borrowing decisions.

(3) SELF-CERTIFICATION OF INFORMATION.

• (A) IN GENERAL.–Before a private educational lender may consummate a private education loan with respect to a student attending an institution of higher education, the lender shall obtain from the applicant for the private education loan the form developed by the Secretary of Education under section 155 of the Higher Education Act of 1965, signed by the applicant, in written or electronic form.
• (B) RULE OF CONSTRUCTION.–No other provision of this subsection shall be construed to require a private educational lender to perform any additional duty under this paragraph, other than collecting the form required under subparagraph (A).

(4) DISCLOSURES AT THE TIME OF PRIVATE EDUCATION LOAN CONSUMMATION.

Contemporaneously with the consummation of a private education loan, a private educational lender shall make to the borrower each of the disclosures described in–

• (A) paragraph (2)(A) (adjusted, as necessary, for the rate of interest in effect on the date of consummation, based on the index used for the loan);
• (B) subparagraphs (B) through (K) and (M) through (P) of paragraph (2); and
• (C) paragraph (7).

(5) FORMAT OF DISCLOSURES.

• (A) MODEL FORM.–Not later than two years after the date of enactment of this subsection, the Board shall, based on consumer testing, and in consultation with the Secretary of Education, develop and issue model forms that may be used, at the option of the private educational lender, for the provision of disclosures required under this subsection.
• (B) FORMAT.–Model forms developed under this paragraph shall–
  • (i) be comprehensible to borrowers, with a clear format and design;
  • (ii) provide for clear and conspicuous disclosures;
  • (iii) enable borrowers easily to identify material terms of the loan and to compare such terms among private education loans; and (iv) be succinct, and use an easily readable type font.
• (C) SAFE HARBOR.–Any private educational lender that elects to provide a model form developed under this subsection that accurately reflects the practices of the private educational lender shall be deemed to be in compliance with the disclosures required under this subsection.

(6) EFFECTIVE PERIOD OF APPROVED RATE OF INTEREST AND LOAN TERMS.

• (A) IN GENERAL.–With respect to a private education loan, the borrower shall have the right to accept the terms of the loan and consummate the transaction at any time within 30 calendar days (or such longer period as the private educational lender may provide) following the date on which the application for the private education loan is approved and the borrower receives the disclosure documents required under this subsection for the loan, and the rates and terms of the loan may not be changed by the private educational lender during that period.
• (B) PROHIBITION ON CHANGES.–Except for changes based on adjustments to the index used for a loan, the rates and terms of the loan may not be changed by the private educational lender prior to the earlier of–
  • (i) the date of acceptance of the terms of the loan and consummation of the transaction by the borrower, as described in subparagraph (A); or
  • (ii) the expiration of the period described in subparagraph (A).

(7) RIGHT TO CANCEL.

With respect to a private education loan, the borrower may cancel the loan, without penalty to the borrower, at any time within three business days of the date on which the loan is consummated, and the private educational lender shall disclose such right to the borrower in accordance with paragraph (4).

(8) PROHIBITION ON DISBURSEMENT.

No funds may be disbursed with respect to a private education loan until the expiration of the three day period described in paragraph (7).

(9) BOARD REGULATIONS.

In issuing regulations under this subsection, the Board shall prevent, to the extent possible, duplicative disclosure requirements for private educational lenders that are otherwise required to make disclosures under this title, except that in any case in which the disclosure requirements of this subsection differ or conflict with the disclosure requirements of any other provision of this title, the requirements of this subsection shall be controlling.

 (10) DEFINITIONS.

For purposes of this subsection, the terms “covered educational institution”, “private education lender,” and “private education loan” have the same meanings as in section 140.

(11) DUTIES OF LENDERS PARTICIPATING IN PREFERRED LENDER ARRANGEMENTS.

Each private educational lender that has a preferred lender arrangement with a covered educational institution shall annually, by a date determined by the Board, in consultation with the Secretary of Education, provide to the covered educational institution such information as the Board determines to include in the model form developed under paragraph (5) for each type of private education loan that the lender plans to offer to students attending the covered educational institution, or to the families of such students, for the next award year (as that term is defined in section 481 of the Higher Education Act of 1965).

• SOFI
• RISLA
• GESA Credit Union
• Ascent
• DR BANK
• Earnest
• Citizens
• MEFA
• Discover
• MPOWER
• Funding U
• College Ave
• WECU
• Credible
• Sallie Mae
• Custom Choice
• Lendkey
• Alaska Commission on Postsecondary Education
• BECU
• Edly
• Education Loan Finance (ELFI)
• Bank of Lake Mills
• PHEAA
• SouthEast Bank
• STAR ONE Credit Union
• Affinity Plus Federal Credit Union
• CEFCU
• Rivermark Community Credit Union
• PNC Education Loan Center
• Bank of North Dakota

announcement This list is randomly sorted. As this is a historic list, not all lenders listed may still be offering private loan products.

Once borrowers have decided that a private student loan is the best option, follow the steps below to complete the application and disbursement process.

Financial Aid employees are prohibited from entering into revenue-sharing arrangements with lenders, steering borrowers to particular lenders, intentionally delaying loan certifications from selected lenders, or entering agreements with lenders regarding loan volume or preferred lender status. Borrowers are free to select any lender they choose.

1. Go to FASTChoice and research potential lenders or work with a lender of your choice.
2. From FASTChoice, click the "Apply" button next to the desired lender.
3. Once directed to the lender's site, complete all requirements as requested by the lender. Lenders will notify the Financial Aid Department at Western Washington University of the request to certify your private student loan once all lender requirements have been completed.
4. After the loan is certified, students will receive notification via their official WWU email account and Web4U. Funds will be sent to Western Washington University approximately 14 business days after the certification date or at the beginning of the academic term for which the loan has been requested, whichever is later.
5. To inquire on the status of your loan or to request changes to your loan, contact the Financial Aid Services Center.