CREDIT-BASED EDUCATIONAL LOANS

Credit-based loans are non-need based educational loans that students can borrow to assist with unmet educational expenses after federal aid has been applied. These loans usually have higher interest rates. The amounts that a borrower can receive, interest rates, fees, and repayment terms vary among lenders.

Students must complete a FAFSA (Free Application for Federal Student Aid) first before applying for all credit-based loans, except the Federal PLUS Loan. Financial aid staff will not certify a credit based loan for a student until the student has received all federal aid that is available.  Graduate or Medical students should consider Federal GRAD PLUS loans before applying for a private educational loan.  Although based on credit as well, GRAD PLUS loans are federal educational loans and eligible for similar borrower benefits as the Federal Stafford and PLUS programs.  Federal PLUS and Federal GRAD PLUS loans can be included in a Federal Consolidation Loan.  Pre-approval is available online for all credit-based educational loans.  Dependent students who are receiving PLUS loan funds only are not required to complete a FAFSA.

Borrowers are strongly advised to contact each lender that they are considering to determine the exact terms, conditions, and availability of individual incentive programs.