Private Student Loans, also known as Alternative Loans, are loans offered by private lenders to help families cover educational expenses that are not covered by other financial aid resources. Students do not need to complete a FAFSA to receive a private loan, but since the federal loans are generally less expensive and offer better terms, it is recommended that students exhaust all their eligibility for federal aid before resorting to private student loans.
Eligibility for private loans is credit based, and students will usually either need a personal credit history or a credit worthy cosigner to qualify. Terms and conditions vary based on the lender, the type of loan, and the credit score of the borrower. Oakwood University will work with any lender of the student’s choosing and has a list of lenders students have used in the past. For guidance or a list of lenders previously used by Oakwood students, contact the Office of Financial Aid.