Private (Nonfederal) Alternative Loans

NYU students should apply for all eligible financial assistance available before considering a private, alternative loan.  Private loan interest rates, terms, conditions and eligibility requirements will vary, and the borrower (and co-borrower, if applicable) should first compare a variety of private student loans offered by banks and other education loan providers and apply only for the alternative loan that best suits their needs.

Please think carefully about your obligations as a borrower before pursuing any educational loan.  Consider your educational investment at NYU, as well as your long-term financial commitments when borrowing.

A nonfederal private loan may be an appropriate choice for you, if:

  • You have applied for the maximum amount of all federal loans suggested to you and still have a difference between the cost of attendance and the total financial aid you have received.
  • You are a dependent undergraduate student and your parents will not borrow (or have been denied) a Federal PLUS Loan (see also the Federal Unsubsidized Stafford Loan).
  • U.S. government regulations make you ineligible for a federal loan. You may still qualify for a private loan because such programs are not bound by the same federal restrictions. For example, if you are not making satisfactory academic progress, are in default on a federal loan, did not respond to verification requests, are enrolled for less than 6 points, or are ineligible for federal loans for other reasons, you may be eligible for private loans instead.
  • You are in arrears for a semester prior to the current semester. You may be able to receive a private loan for an earlier loan period.
  • You are an international student with limited borrowing alternatives. (See our notice to international students below.)

Some private loans do not have full deferment options. It is best to borrow only the amount that you absolutely require. Also note that such loans are for educational purposes only, which means you must be a registered student and the amount you borrow cannot exceed the cost of attendance. (Specific alternative loan programs may have fixed minimum and maximum amounts for which you can apply.) There are no maximum income restrictions. Individual lenders will evaluate credit history. Application fees are not refundable.

If you decide to apply for a private educational loan, you must provide all documentation requested by the lender and follow their application instructions.