Private loan are non-governmental loans (sometimes called "alternative loans") issued from a bank to an individual for the purposes of covering the unpaid portion or "gap" in total cost of attendance, which includes housing, tuition, food, travel, books, etc... "Gap" is defined as expenses not covered by scholarships or other aid offered by the student's school.

• Private student loans should supplement federal or government student loans. Always maximize your federal financial aid including federal student loans, grants and scholarships before seeking out private loans.
• Private student loans are issued by banks, lending companies or other private entities, in the student's name, usually with a co-signer. Having a credit-worthy co-signer greatly increases the chance of getting approved.

Use the comparison tool here to consider all of the costs of a private student loan, including fees and rates. Comparison shopping for loans is the only way to get an accurate idea of which loan is the best choice for your unique financial situation.

Examine all of the attributes of each loan, such as:

• the annual percentage rate (APR)
• the total cost of the loan
• the monthly payment
• the loan's borrower rewards
• student loan deferment options