Top Questions about NextStudent Private Loans

DTC Status For loans to be disbursed directly to the borrower

What’s the difference between private and Federal student loans?
Federal student loans are guaranteed by the Federal government, and offer attractive terms such as low interest rates, deferred repayment, subsidized interest payments and longer repayment terms. Credit checks, if required, are less stringent than for other types of consumer loans. You must complete the Free Application for Federal Student Aid (FAFSA) to be eligible for Federal student loans.

Private loans are non-government loans offered by banks, credit unions and other lenders. These loans are not based on financial need, but rather on your creditworthiness and ability to repay. Private loans are designed to supplement federal loan programs and can be used for a wide range of education purposes, including tuition, books, living expenses and computers. The rates and terms vary by lender and borrower creditworthiness. In some cases, a co-signer is required to receive a private loan.

Do I need a co-signer for a NextStudent Private Loan?
Not necessarily. You may be eligible for a NextStudent Private Loan if you have a satisfactory credit history, are employed and are a U.S. citizen or permanent resident who has resided in the US for at least two years. If you don’t meet the minimum eligibility requirements, you can apply for a NextStudent Private Loan with a co-applicant who does.

What are the rates for a private loan?
The rates vary according to the specific purpose of the loan. For instance, NextStudent Private Loans for undergraduates start at a rate of LIBOR plus 3.6%. All NextStudent Private Loan rates are based on LIBOR, plus a margin. Click here for more info.

How do I apply for a NextStudent Private Loan?
Call our Education Finance Advisors at (800) 518-2509. It’s fast and easy—most loans are pre-approved in as little as 15 minutes.

	Quick Links » Apply Online » Eligibility » Loan Amounts Download an Undergraduate Private Loan Application Download a Graduate Private Loan Application Download a Continuing Education Private Loan Application Download a K-12 Private Loan Application