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
PLUS/Grad PLUS: Yes (limited)
|Credit Score or Debt-to-Income considered?||Direct Loan: No
PLUS/Grad PLUS: 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: 5.05%
|Loan Fees**||Direct Loan: 1.062%
|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|
* Applies to federal loans first disbursed on or after July 1,2018 and before July 1, 2019
** Applies to federal loans first disbursed on or after October 1, 2018 and before October 1, 2019
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. When choosing a lender, make sure that Walden University is a participating school in their loan program (www.elmselect.com).
Several points that should be researched when considering a private loan:
Most private loan programs require the Office of Financial Aid to certify your eligibility before approving your loan. If you receive financial aid, you must notify the Office of Financial Aid 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:
Do you have questions about financial aid? If you haven’t yet applied to Walden, please contact an enrollment advisor at 855-646-5286 in the United States. If you are a current student, please contact a financial aid advisor at email@example.com or call 1-800-WALDENU (1-800-925-3368).