Caution:
You should exhaust all
of your federal student loans
(including the Federal
PLUS loan) eligibility before considering
these loans.
Consider ways to keep
your costs down to reduce student loan debt.
Remember to keep track
of your loan debt and the amount you will have
to repay when you graduate.
Determine the total
amount of education debt you and your family
are willing to accumulate during your entire
college enrollment and only borrow what you
need.
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Private loans are not federally guaranteed and do
not require that you file the Free Application for Federal
Student Aid (FAFSA). The yearly amount cannot exceed
the annual cost of attendance minus other financial
aid and resources.
Miami University will certify private loans from any
lender. The list of private loan providers below (in
random order) represents the lenders who Miami students
chose most frequently for the 2008-2009 academic year.
In all, 72% of Miami students who borrowed a private
loan in 2008-2009 chose one of these seven lenders.
(Another 23% of our students chose Key Bank as their
lender, but Key Bank no longer offers a private student
loan)
Terms, fees, and borrowing limits of private loans
differ. Borrowing a private loan is a decision that
should be made with careful consideration. When selecting
a private loan provider, we recommend that you consider
all of the following:
- Which academic levels (graduate vs. undergraduate)
are eligible
- The amount of any origination or repayment fee
percentage
- The annual borrowing limit
- What financial indicator the interest is based
on (i.e. LIBOR, Prime)
- The citizenship level required
- Whether or not there is a cosigner release option
available
- How credit worthiness is determined
- Whether or not you need this funding for past
due balances to Miami
- The ability to sign your promissory note or other
documents electronically
- Whether or not there is a prepayment penalty
- The maximum repayment term
- The minimum number of enrollment hours needed
to be eligible
- The number and range of repayment options
One last thing
to consider: It's a good idea to apply with
a cosigner, even if you are approved for the loan on
your own. A cosigner may lower the interest rate of
the loan since the loan will also be based on your cosigner's
credit rating. A lower interest rate will lead to a
lower monthly payment, in turn making the overall loan
indebtedness less. If you have poor credit history or
if you have no credit at all, many banks may require
you to get someone to cosign your loan application before
they give you the loan.
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