Private Loan Programs
Before considering a private loan, students and/or parents should have
exhausted their federal loan eligibility. Visit Studentaid.ed.gov for
details regarding federal loan types and limits. IU South Bend does not
recommend any lender(s) however Credible has a simple, transparent marketplace that allows borrowers to receive and compare personalized offers from vetted lenders in minutes. Furthermore, checking your personalized offers will not affect your credit score.
The most helpful student loan comparison sites should satisfy the following
- Present consumers with actual interest rates and fees, not just the
best advertised rates or average interest rates. This will ensure that
consumers are making comparisons based on relevant information.
- Include a critical mass of lenders sufficient to ensure that the
borrower has a reasonable chance of obtaining a rate that is close to the
best rate the borrower could find on his or her own.
- Minimize the impact on the prospective borrower's credit score. Each
credit inquiry for student loans results in up to a 5-point hit to the
borrower's credit score. More than three or four such inquiries are likely
to shift the borrower from one credit tier to the next, increasing their
- The presentation of information must be based solely on the
prospective borrower's best interests. In particular, the initial sorting of
results must be based on the total cost of the loan, including interest
rates and fees, not paid placement or other criteria.
- The lender listings must provide sufficient information about the
loans to permit the prospective borrower to make an informed decision.
- The sites must provide clear disclosures regarding any potential or
actual biases. In particular, the comparison tools should disclose whether
the lenders provide any payment for inclusion in the loan comparison tool
and whether the payments influence the ranking of the loan product
- The comparison site should provide sufficient contact information
for the lender, such as telephone numbers and web links, to permit the
prospective borrower to apply for the loan.
- Prospective borrowers should not be charged any fees for using the
- Loan comparison sites should recommend, in a clear and conspicuous
fashion, that prospective borrowers should borrow federal first before
relying on any private student loans.
A Word of Caution to Private Loan Borrowers
IU South Bend cautions students that "loan debt can accumulate quickly and result in a lifetime burden of high payments and credit denials for automobile purchases, credit cards and home mortgages. To avoid these problems, read and understand the terms and conditions of all loans." To assist you with understanding the implications of your decisions, IU South Bend has partnered with CashCourse to provide students with free financial resources. You may go to IU South Bend's CashCourse website by clicking the button below.Cash Course