Private education loans may have significant disadvantages when compared with federal education loans. We strongly encourage you to first borrow any federal loans for which you are eligible. The chart below will help you in understanding the differences between Federal and Private Loan funds.
|Federal Loans||Private Loans|
|Credit Check Required?||Direct Loan: No
|Credit Score or Debt-to-Income considered?||Direct Loan: No
|Co-Signer Required?||Direct Loan: No
|Deferment Options||Several options||Depends on lender|
|Grace Period||Direct Loan: 6 months||Depends on lender|
Undergraduate –Direct Loan Subsidized/Unsubsidized: 3.86%
|Loan Fees||Direct Loan: 1.072%
|Depends on lender|
|Flexible Repayment options||Many options available||Generally none|
|Loan Forgiveness Options||Several options available||Generally none|
|Penalties for Early Repayment||None||Depends on lender|
When choosing a private education loan, you should compare the loan terms offered by several lenders in order to choose the best fit for your situation. A resource for finding active private education loan programs is www.elmselect.com. When you choose your lender make sure that Walden University is a participating school in their loan program.
Here are several points you should research when considering a private loan:
Most private loan programs require our office to certify your eligibility before approving your loan. If you receive financial aid, you must notify our office of any private loans you borrow as it may affect your aid eligibility.
Under the Federal Truth in Lending Act (TILA), your lender must provide you with the following documents:
If you have questions, contact the Financial Aid Office at 1-800-925-3368, option 1, option 1.
* Applies to loans first disbursed on or after July 1,2013 through June 30, 2014
** Rates adjust annually