Private Loans
Many banks, credit unions, and other financial institutions offer private (non-federal) student loans. Private loan programs may offer interest rates and terms that are competitive with those of federal loans. However, as you consider your borrowing options, you should keep in mind that federal student loans are required by law to provide a range of flexible repayment options, which private loans are not required to provide. Also, federal direct loans are available to students regardless of income or credit history.
Student Eligibility
- Must be enrolled, or planning to enroll, for the period of the loan.
- Enrolled in a degree seeking program.
- Must be meeting Satisfactory Academic Progress (SAP).
1) Fall and Spring bills are very similar. It is safe to assume that the amount you need to borrow for Fall will be the same amount you need for Spring.
2) Peace of mind knowing the full year is completely funded.
3) Interest doesn't begin to accrue on loan until disbursement. So only the half of the loan that disburses will accrue interest immediately.
4) Have just one credit check for the year.
5) The loan will be reflected on the bill received from University Bursar.
6) Don't wait until the busy holiday season to apply for a Spring loan. You will likely forget.
7) Campus closes Christmas Eve through New Years Day. Time will be limited for new loan processing.
1) Full year loans are automatically split 50/50 between Fall and Spring. If you need $15,000 for Fall, go ahead and apply for $30,00 to cover the year and we'll split it evenly and schdule disbursements accordingly. Don't worry, the Spring disbursement won't start accruing interest until it disburses.
2) If circumstances change and you no longer need the loan or you need the amount reduced, just let us know by the first of August (for Fall loans) or December (for Spring loans) and we can cancel or reduce the pending disbursement, no problem.
3) The students total aid package, including Private loans, cannot exceed the Cost of Attendance (COA) budget for the period of the loan.
4) Loan approvals need to be received no later than a month before the Due Date to allow time for our office to certify the loan and the lender to schedule disbursement of the funds.
5) Campus closes Christmas Eve through New Years Day. Any loan application received during that time will not be processed until we return to the office in January and there should be no expectation that the loan will be processed before Due Date.
6) We process the loan as requested. If you intended the loan to cover a different aid period, you will need to apply for a new loan.
7) We do not expedite processing. Certifications will be processed in the order received. Do not delay!
8) Private lenders adhere to a Right To Cancel period, so your private loan will take time to disburse to the school, which will also delay a potential refund.
9) If we have to return private loan funds after disbursement, please allow 8 weeks for your lender to update their loan records.
Choosing a Private Lender
Virginia Tech does not endorse any one private lender or loan product, nor does it limit student choice. Students can choose any loan product from any private lender they wish. But to assist students who are looking for a private lender, we do provide a historical lending list via FastChoice.
Please understand that lenders may offer various attractive products which have very specific eligibility requirements. You must meet the lender's eligibility requirements to be approved. One universal requirement is the applicant must be credit-worthy. If the student does not have a strong credit history, they may need to obtain a cosigner to endorse the loan.
Click on the FastChoice link to receive basic counseling on private loans and to begin your search.