Private loans are one of these alternatives. If you don't qualify for a federal loan or if what you were awarded won't cover expenses, a private loan might work for you.
Many lenders offer private student loan products and the terms often vary.
Because the federal government does not guarantee these loans, lenders assume a greater risk. Accordingly, the interest rates and fees charged for private loans are generally higher than those for federal loan products. Also, the rates and fees on these products are often directly tied to a borrower's credit history. A borrower with a good credit history will probably receive rates and fees considerably lower than a borrower with a poor credit history. Because a private loan is generally more expensive, a decision to borrow using a private loan product should not be made lightly.