Private Loans

Private Loan is a non-derivative financial asset with a fixed interest rate and a maturity date, which is not bought in an active market but negotiated between the two parties involved.  Private loans are non-government loans offered by banks, credit unions and other lenders. They are not based on financial need, but rather on your creditworthiness and ability to repay.

Private student loans are credit-based, non-federal student loans that can help you cover any school expenses you have remaining when scholarships, grants, and federal student loans aren't enough. Many private student loans will help you cover up to 100% of your school costs — not just your tuition and fees, but other acceptable college expenses like rent (or room and board), textbooks, a laptop, and your trips home.

Most private loans are variable-rate loans, with interest rates varying by lender. Your interest rate may adjust monthly, quarterly, annually, or at some other interval as designated by your lender. The interest rate on a private loan is generally determined by adding a variable index (such as LIB-OR or T-bill) to a fixed margin. The margin used to determine your student loan interest rate can vary depending on your creditworthiness. Borrowers who are deemed more credit worthy typically qualify for lower margins (and thus lower interest rates).