Private Student Loans
Private loans can be used as a substitute for a student's expected family contribution as determined by need analysis.
Each lender conducts a credit check in which the debt to income ratio must not exceed 40% including the loan being applied for. Lenders require a good credit report from the applicant and co-signer, if applicable. The criterion for loan approval varies with each lender; however, most lenders agree that a credit report cannot include:
- open judgments, or
- excessive past due accounts within the past two years.
Additionally, a student applicant cannot currently be in default on any educational loan.