Private Alternative Loans
There are a large number of private commercial education loan options available to assist students and families in meeting college costs. Before you consider a private educational loan (often called an "alternative" loan), we recommend you determine your eligibility for federal student loans, which generally have better terms; more information about federal student loans at www.federalstudentaid.ed.gov.
Just like any other student loan, borrowers should consider a number of factors before applying for a private educational loan and are encouraged to review Division of Financial Aid loan counseling information.
Compare this type of loan to other financing options.
- Private educational loans are usually higher interest programs with interest that accrues while the student is in school.
- Students (or co-borrowers) must have a good credit history to obtain private educational loans.
- Most lenders require that you be enrolled at least half time in a degree-seeking program (dependent on the lender). Purdue will certify your loan up to the cost of attendance less other aid.
- Depending on the private loan lender, it is possible to apply for private educational loans for prior loan periods (retroactively) after the end of the loan period
- You will be required to complete a Self Certification Form to provide financial aid information to your lender. You can find this information on the Accept Award Offer and Cost of Attendance Tabs.
- Your lender is required to provide the borrower with three additional Truth-in-lending statements at specific points in the application process. As a result, we are recommending that you apply at least three weeks prior to the date you need the funds and comply quickly to information requests from your lender.
Purdue is partnering with The National Student Clearinghouse to provide currently enrolled students access to federal and private loan history in one convenient location. This information is available through the Academic Tab in myPurdue and by clicking on the Enrollment Certification/National Student Clearinghouse link.
This service is not available for students who have graduated or for students who are no longer enrolled at Purdue. These students can access their federal loans through the National Student Loan Database System. Private loan information may be obtained by contacting their lender or servicer.
Choosing a Private Loan Product
Purdue University recommends borrowers compare and research various private educational loan programs and products that are available in the marketplace. The list of considerations below is provided as a starting point to assist with asking lenders questions to find the loan that best meets the borrower's needs.
- Fixed or variable interest rate
- Enrollment requirements
- Co-signer release option during repayment
- Loan forgiveness in event of student death or disability
- Upfront application fee
- Disbursement/origination fee
- Repayment fee
- Deferment options and repayment requirements
- Interest-only payments while in school
- Full monthly payments (no deferment)
- Deferment available for current degree
- Deferment available on previous loan if seeking loan for subsequent degree
- Consolidation options
- Minimum borrowing limits
- Maximum aggregate borrowing limits
- Satisfactory Academic Progress (SAP) requirement
- Retroactive loan availability
- Processing timeline
- Application process and communication methods
Private Educational Loan Programs
The following is a list of private lenders students have used at Purdue University over the past three years. Purdue University does not endorse a particular lender. Students are free to choose any lender, including ones not listed below. See a side-by-side comparison of Purdue's top-volume lenders.
Addison Avenue Federal Credit Union
Affinity Plus Private Education Loan
Alaska Supplemental Loan
Alliant Credit Union
Amer Heritage Federal Credit Union Private Ed
AmeriCu Credit Union
Apple Federal Credit Union
Bank of North Dakota
Baxter Credit Union
Boeing Employees Credit Union
Charter One Tru Fit / Citizens Bank TruFit Student Loan
Citizens Bank TruFit Student Loan
Citizens Equity First Credit Union
Clearview Federal Credit Union
Complete Ed Student Loan
Lake Trust Credit Union
CU Student Loans
Custom Choice Loan funded by SunTrust
Digital Federal Credit Union
Discover Student Loans*
Eli Lilly Federal Credit Union
Erie Community Credit Union
Evansville Federal Credit Union
Fifth Third Bank
First Capital Federal Credit Union
Genisys Credit Union
Hawaii Federal Credit Union
Interra Credit Union
Kemba Financial Credit Union
Credit Union Student Choice
Massachusetts Educational Financing Authority
Members First Federal Credit Union
Mid Atlantic Federal Credit Union
Mississippi Valley Credit Union
Motorola Employee Federal Credit Union
NASA Federal Credit Union
New Jersey Class
Nothwest Federal Credit Union
Notre Dame Credit Union
Pentagon Federal Credit Union
Purdue Federal Credit Union
Quorum Federal Credit Union
Rhode Islan Student Loan Authority
San Antonio Federal Credit Union
Seaport Credit Union
SoFi Alumni Based Student Loans^
Star 1 Credit Union
University of Iowa Community Credit Union
Vermont Student Assistance Corporation Education Loan Finance Program
Wright Patt Credit Union
Visions Federal Credit Union
+ = lenders who certify loans at less than half-time enrollment
^ = lenders who will do private loan consolidations