Loan Overview (Federal vs. Private)

Students considering student loans need to be aware of the differences between federal student loans and private student loans.

• Federal student loans are required by law to provide a range of flexible repayment options including, but not limited to, income-based and income-contingent repayment plans as well as loan forgiveness benefits that private lenders are not required to provide.
• Federal direct loans are available to most students regardless of income. Other qualification criteria do apply, more information about Federal Student Aid.
• Private student loan lenders can offer variable interest rates that can increase or decrease over time, depending on market conditions. The interest rate on a private loan may depend on the borrower’s and/or co-signer’s credit rating.
• Private student loans have a range of interest rates and fees and students should determine the interest rate of, and any fees associated with, the private student loan included in their financial aid award package before accepting the loan.  Students should contact the lender of the private student loan or their UC campus’ financial aid office if they have any questions about a private student loan.

Application Procedure for Private Alternative Educational Loans

The paperwork required for private loans varies between lenders. More information about private loans and a list of lenders is here (insert here the link for the private loan page). We encourage you to compare the various loans available through private loan sources. The federal Direct Grad PLUS Loan is now available to provide funding in most cases where a private loan was needed in the past.

Deadline: It is requested that incoming students complete and submit all required aid application materials within 20 days of receipt of notification to begin the application procedure.