Private Educational Loans

Private education loans are offered by banks, credit unions, and private lenders. These loans are not issued or guaranteed by the federal government. 

Private loans may be used only for education-related expenses, such as tuition, fees, books and supplies, housing, food, travel, and other approved living expenses.

Unlike federal loans, the terms of private loans vary by lender and may be different in interest rates, fees, repayment options, and grace periods. Most lenders review your credit history and credit score, and some students may need a co-signer to qualify.

Here is a Step-by-Step Guide

Research Private Student Loan Lenders

When it comes to finding the right private student loan lender, you'll need to do some shopping around. This may include searching the internet, speaking with lending agencies, or talking with peers/colleagues.

Please note: The University of Rochester School of Medicine and Dentistry does not recommend specific lenders; however, you may refer to our Lender Comparison Tool (link coming soon) for additional information. 

When to Apply

There is no fixed deadline to apply for a private student loan. You may apply at any time during the year, which can be helpful if unexpected expenses arise. However, students are strongly encouraged to apply well in advance of their tuition due date. The private loan process may take several weeks from application to disbursement, so planning ahead is essential to ensure funds are available on time. In order to ensure that your loan funds disburse on a timely basis, we encourage applications to be made prior to June 1st of the academic year that is about to begin.

Find a Co-Signer (If needed)

Your eligibility for a private student loan is determined by the lender based on your credit history and other factors. You may need a co-signer if you have limited credit history, a low credit score, or limited income. A co-signer is often a family member or close friend with a strong credit history. Having a co-signer may improve your chances of loan approval, and/or allow for better pricing. Please note that a co-signer is equally responsible for repaying the loan. You remain fully responsible for repayment, and missed payments may negatively affect both your credit and your so-signer's credit.

Gather All Necessary Paperwork

Whether you plan to apply on your own or have a co-signer, you will need to gather some essential financial information. Having it available will help to streamline the process later. Here is everything you and your co-signer may need before filling out a private student loan application:

• Social Security Numbers
• Personal Information
  • These may include such items as telephone numbers, dates of birth, home addresses, gross annual income, monthly rent or mortgage, a copy of your latest tax return, employment information, and recent pay stub, (with in the last 60 days), and/or secure a personal reference. 
• You will likely also need to have all school information available, such as the name of the University (University of Rochester School of Medicine and Dentistry), when you will be graduating, how much it will cost to attend (Cost of Attendance), and how much you are requesting to borrow to cover those costs.

Submit Your Application

Each lender has its own application process, with online applications being the most common. Having your required paperwork ready in advance will help you complete the application quickly and accurately. You will typically be asked to provide:

• Your personal information
• Your co-signer's information (if applicable)
• Financial information, such as a pay stub or tax return
• School information, including your graduation date, loan period, and loan amount
• A personal reference (if required by the lender)

As part of the application, you will be asked to review and agree to the lender's terms and conditions, including authorization for a credit check. Because interest rates, fees, and repayment terms vary by lender, it is important to review all loan terms carefully before accepting a private student loan.

School Certification and Disbursement

After you apply and are approved for a private student loan, the lender will request certification from the University of Rochester School of Medicine and Dentistry Financial Aid Office. Certification confirms your eligible loan amount and the timing of your disbursements. 

Fall Semester loans are typically scheduled to disburse within a few days after the start of your program. Spring Semester loan typically disburses when spring semester classes begin in January. Loan funds are sent directly to the University's Bursar's office and credited to your student account. If your loan eceeds your direct charges (tuition,fees, health insurance, etc.), any remaining credit balance will be refunded to you to assist with your living expenses.