Private Education Loans

Be aware that the private loan application process will take a minimum of 30 days to complete.

Apply early and plan ahead.

1. New Disclosure Forms - Lenders must provide required disclosures to the student and cosigner, if applicable, at three different times during the private loan origination process:
   • Application and Solicitation Disclosure – Provided during the online loan application process or via mail included with the Promissory note.
   • Approval Disclosure – Provided after the loan is approved and the lender has received the promissory note, the Application and Solicitation Disclosure and the Borrower Self Certification Form and the school certification. The applicant and any cosigner have 30 days to return the approval disclosure.
   • Final Disclosure – Provided after the lender receives the Approval Disclosure from the borrower and any cosigner, indicating that the loan has been accepted by the student and the cosigner, if applicable. The loan will not disburse until at least 10 business days after this disclosure is received by the borrower and any cosigner. This is to allow the borrower the option to cancel the loan before it is disbursed.
2. New Borrower Self-Certification Form – A credit-approved student borrower must submit a completed borrower Self-Certification form to the lender. This form requires information on your cost of attendance. Refer to your bill or the Tuition and Fees page for these costs. 
3. New Timing Requirements – These new federal regulations extend the loan processing timeline so meeting deadlines for specific steps will be critical to the successful and timely disbursement of your loan funds. The process will likely take a minimum of 30 days to complete and have funds disburse to the school so apply early and plan ahead.

You should always use any federal loan eligibility available to you before borrowing a private education loan.

It is Castleton University's policy to contact any student who applies for a private loan without first doing a FAFSA.  We want to make sure students are aware of the federal financial aid options, including loans, before processing their private loan.  Once we have that conversation (by phone, email, or in person) if the student chooses not to proceed with the FAFSA we will process the private loan.

Private education loans are consumer loans made to individuals to help pay for college. They are provided by for-profit and nonprofit lending organizations and are not backed by the federal government. Lenders offer private education loans with different interest rates, fees, repayment terms and approval requirements. We suggest that you carefully review each private education loan program to compare the terms and conditions before deciding which loan may be appropriate for your needs.

Most programs allow borrowers to delay payments during school and offer hardship deferments during repayment. These options often increase the total amount you will pay, because interest charges will accrue during deferment periods. Most private education loans require a cosigner (a person who promises to become legally responsible to pay your debt if you fail to do so). If you are considering a variable rate loan, understand that rate changes may not be in your favor and could result in an increased monthly payment.

Castleton University has not reviewed the loan programs for lenders offering private education loans. If you feel you need to apply for one, you can use web based comparison tools to look at different options. In addition, some state non-profit agencies offer private loans (and may not be listed on these websites) so you can call or visit your state agency website to see if they offer a private loan.  Your local bank or credit union may also offer a private education loan.  Because Castleton University does not keep a suggested lender list for private education loans we do not recommend one lender over another.