Private loans are credit-based loans offered to students to assist in covering their educational expenses. These loans are not administered by the U.S. Department of Education. As a result, each lender can set the interest rates, loan fees and terms of his/her programs based on his/her own parameters. Undergraduate students who are not eligible for the Parent PLUS Loan can apply for a private loan. Most lenders have an online application to expedite the process. Once the student is approved, your lender will require the university to certify the student’s eligibility for the private loan. The amount a student is eligible for is based on the student’s Cost of Attendance (COA) minus other aid received for the period. Find out more information about private loans.