Private educational loans are offered through lending institutions and are NOT part
of federal government programs.
Before applying for private loans:
The university encourages all eligible students to complete a FAFSA application to determine federal student grant and loan eligibility.
Federal Direct Stafford Loans tend to have offer lower interest rates, financing options and benefits tailored
to students and their families. Private loans should be considered after taking into
account all federal student loans have been exhausted.
As with all student loans, the amount borrowed must be for educational expenses and
cannot exceed the cost of attendance for the loan period. Money is typically borrowed
in the student's name, although some lenders have loans available under a parent’s
name. A cosigner is usually required if the loan is borrowed in the student’s name
and loan approval is based on creditworthiness. Interest rates, loan fees, and borrower
benefits for private loans vary. Private loans are also available for students that
may not qualify for federal aid including international students (with a cosigner),
students who have past due term balances, and students enrolled for less than half-time.
If you qualify and have been offered any federal loans in your financial aid award
package, you should accept them before considering a private education loan. Alternative
loans are not guaranteed and are based on your creditworthiness. Most have variable
interest rates and fees and do not provide the benefits of federal student loans.
Questions to consider when applying for private loans:
Are there fees such as origination fees associated with the loan or lender?
What is the interest rate? Are they fixed or variable rate?
What are the repayment terms and are there any benefits that the lender offers?
Will you need a co-signer to be approved the loan? Will the co-signer affect the
loan terms?
How much will you need to borrow? Will you need the loan for just 1 term or the full
year?
Will you be required to make payments to the lender while enrolled?
What are the enrollment requirements for the loan such as SAP policy and enrollment
full-time or less?
Can the loan be consolidated with other loans?
Can you borrow money to cover past due balances from a prior school term?
Are there interest rate deductions or other incentives for borrowers who make their
payments on time or early?
Alternative (Private) Educational Loans Lenders
Stony Brook University has teamed up with ELM to provide students a non-bias listing
of some private loan options that students can review. There are many lenders who
participate in the educational loan process and students should carefully research
their options and choose a lender that best meets their needs. You may also choose
lenders that are not listed on the ELM website. Lenders listed on the ELM website
is not a complete comprehensive list of all lenders and the university does not endorse
any specific lender.
When using the tool we recommend that you use the Compare feature which allows you
to view multiple loans for a side-by-side comparison. Additionally you can use features
such as the Filter to narrow your search.
The sort and filter feature will help you review loans that best suit your needs.
Options include:
Repayment Type
Index Rate Type
Enrollment Status - Indicate whether you are less than half time (6 credit) enrollment
Satisfactory Academic Progress- Certain lenders will require to you meet Federal Satisfactory Academic Progress
(FedSAP) guidelines. If you are currently not meeting FedSAP requirements, select
this option so you can view lenders who may offer you a loan even though you are not
meeting the federal criteria.
Past Balance Due - Some lenders will allow you to apply for a loan to cover a past balance due. Be
sure inquire with the lender directly if you have questions regarding the terms and
conditions for prior balances.
The loan estimator tool allows you to see what your expected monthly payments will
be based upon your requested loan amount, length of the loan, and interest rate. You
can elect to use the advanced estimator to include your expected graduation date,
your grace period, and repayment options.
DO NOT borrow money you do not really need. Private educational loans generally have higher
interest rates than federal loans.
Be selective in choosing your lender. Look for a lender that will give you the best
interest rate, lowest fees, and best repayment plan. Failure to fully research these
items may cause you to incur excessive debt.
You may want to find a cosigner. Even with a good credit score, a cosigner may help
you get a better interest rate and/or a better repayment plan. A cosigner is a parent,
guardian, or other trusted individual that is willing to put their name on your loan
and be responsible for payments should you fail to make them. There are usually cosigner
release programs that allow your cosigner to be removed from the loan after a designated
period of time.
When applying for a private educational loan, you will need to indicate the term you
are requesting the loan for directly with the lender. Please indicate the following
dates, based upon the semester(s) you are requesting the loan:
Summer only: May to August
Fall Only: August to December
Fall/Spring: August to May
Spring Only: January to May
Please note that if you need a Summer/Fall/Spring loan, it is highly encouraged to
request a Summer only loan in addition to a Fall/Spring loan, as our office typically
processes summer aid as a stand-alone semester.
Stony Brook University takes financial aid advising very seriously which is why we
have developed a Private Educational Loan Search Tool from ELM. The purpose of private
educational loans is to provide secondary resources for students who have exhausted
federal loan program options. ELM Search is a tool used to assist students and families
with the decision making process of choosing a lender. There are many student loan
lenders from which you can choose. While the lenders on our ELM Search Tool have been
evaluated closely on the basis of customer service, technology, lender stability,
reputation, default management, and borrower benefits, students have the right to
select the lender or loan product of their choice. In fact, borrowers are strongly
encouraged to conduct their own consumer research.
Stony Brook University established its ELM Search by proactively requesting Requests
for Information (RFI's) from lenders. The lenders on our list have demonstrated a
commitment to providing high quality customer service and quick accurate loan processing.
The performance of our lenders is evaluated each academic year. This evaluation is
conducted by a committee of financial aid professionals and is based on a variety
of criteria such as customer service and technology, lender stability and reputation,
default management, and borrower benefits. The list may change from year to year as
current lenders are evaluated and new lenders are considered. Each lenders must meet
the following requirements:
Customer Service and Technology:
Loan borrowers should receive quick, efficient, and accurate processing of their loans
through a simplified application process and state of the art operations. Programs
should interface with the university’s financial aid processing system assuring a
streamlined, electronic loan certification and funds delivery system. Timely and responsive
processing with outstanding problem resolution service is essential. A toll free number
for borrower information is required. Ideally, there should be separate dedicated
toll free numbers for borrowers in school and in repayment status.
Lender Stability and Reputation:
Our sample lenders, their affiliates, and associated loan servicing agencies must
be well established in the student educational loan industry. They also must maintain
a proven record of excellent customer service to borrowers. This includes offering
a variety of repayment options and the maintenance of a well-trained staff to answer
questions via a toll-free number.
Default Management:
Our sample lenders provide web-based default management tools and early intervention
for borrowers who are delinquent on their loan payments. They also provide information
and advice to borrowers about costs of deferment/forbearance, repayment calculators,
consolidation information, planning/budgeting, and credit information to students
and parents.
Borrower Benefits:
Our sample lenders have competitive rates and provide above-average repayment benefits
to loan borrowers. Borrower benefits provided by each of our sample lenders can be
accessed from the websites listed on our sample Loan Lender List. Reasons for selecting
a particular lender can vary from person to person. Some choose a lender based on
name recognition or where they have already had positive banking experiences. Others
prefer the immediate benefit of lower origination fees, resulting in more money up
front. Still others prefer the long-term advantage of repayment options, like an interest
rate reduction as a reward for making payments on time.
Effective February 14, 2010, lenders offering private education loans are now required
to provide consumer disclosure information.
Federal regulations also now mandate that private loan lenders require borrowers to
complete a Private Educational Loan Application Self-Certification Form when requesting
any private education loan. This form must be submitted to the lender – NOT to Stony
Brook University! While your cost of attendance and estimated financial assistance
are needed to fill out section 2 of the form, you should be able to obtain this information
by accessing your Stony Brook SOLAR account. If you need assistance completing this
form, please contact your corresponding Financial Aid Office.
