The Office of Student Financial Aid recommends that students utilize federal student loans before considering private educational loans. Federal loans have lower fixed interest rates as well as deferment and consolidation options. Private loans should be used for circumstances where you have exhausted all other options, including federal aid and scholarships, in regards to financing your education.
Students who need further financing should select the loan that best meets funding needs and offers the best interest rate and borrower benefits. Points to consider when choosing a lender:
- Interest Rate - it may be capitalized, therefore, increasing the amount of money you ultimately owe. Consider using a cosigner, you may qualify for slightly lower rates.
- Fees - the interest rates and fees that you pay are based on your credit score and the credit score of your cosigner, if you choose to use one.
- Borrower Benefits - these vary by lender.
- Repayment Terms - some lenders require you to pay while you are in school. Others will defer payments until after graduation.
- Eligibility Requirements - check the requirements for the loan.
Borrowers who have questions regarding federal or private student loans are encouraged to contact the Office of Student Financial Aid at 361-593-3911 for more information or individual assistance.
After a student has researched and selected the alternative loan of their choice, and once the lender approves the loan application, Texas A&M University-Kingsville provides loan certification information to the lender so that funds are available at the same time as regular financial aid. Texas A&M University-Kingsville has no written or implied preferred lender arrangement with any lender. Students can choose any lender.
As a result of the Truth in Lending Act (TILA) of 2009, borrowers will be required to submit a Private Education Loan Applicant Self-Certification to their lender before funds can be disbursed. Your lender will provide you with this form when you apply for the private loan. Private loan disbursements cannot be made until you have submitted this form to your lender.
Below is an example of what to expect if you apply for a private loan:
- Apply online (you will receive the Application Disclosure Statement).
- Obtain the self-certification form and return to your lender.
- If approved for the loan, you will be provided an Approval Disclosure Statement.
- Finally, you will receive a Final Disclosure Statement (allowing you up to 3 days to cancel the loan before it disburses).