Private Educational Loans
Federal vs. Private Loans: What's the Difference?
One big difference is when you start paying the loan back.
Federal Loans
Payments start after school
You do not pay until after you graduate, leave school, or drop below half time.
Private Loans
Payments may start now
Many require payments while you are still in school, though some let you wait.
Payments are just one difference.
Learn more at Federal Student AidA private student loan is a non federal loan from a bank, credit union, state agency, or school. It can help cover costs after your other aid is used up.
Use federal loans first. They usually have better terms, like fixed interest rates and income driven repayment plans that most private loans do not offer. We strongly encourage you to use up all your federal loan eligibility before you borrow a private loan. Learn more on our Student Loans page.
Private loans are based on credit, so you and your cosigner will complete a credit check. They cannot be combined with federal loans. If you choose a private loan, our office can certify it up to your Cost of Attendance minus any other aid you have received.
Before You Apply
1
Check your other aid
File the FAFSA to see what federal, state, and school aid you can get. Review your Student Aid Report and answer any requests from our office quickly.
Undocumented students who do not meet the basic eligibility criteria for federal aid but qualify for Colorado ASSET can file the CASFA to check for state aid instead.
2
Look for scholarships
Scholarships are gifts you usually do not repay. Visit our Scholarships page to learn how to apply before you borrow.
3
Decide how much to borrow
Review your aid offer in UCDAccess and compare it to your Cost of Attendance. Your total aid from all sources cannot be more than that cost, so borrow only what you truly need.