Private loans - also called alternative loans - can help you fill the gap when federal loans, scholarships, grants and work-study programs don't quite meet your financial need.

Borrowing money to finance your higher education can be a wise investment; however please consider the following before you apply for a private loan:

• Private loans typically allow undergraduate students to apply for a loan with a cosigner; such as your parents, which can increase your chance of getting a higher loan amount, a better interest rate, and a lower monthly payment.
  
  
• Your monthly repayment obligation will be based on the amount borrowed, the interest rate, the origination or repayment fee (if applicable) and the length of repayment.
• You should always borrow from the federal student loan programs before you apply for private loans. Federal student loans, like the Stafford and PLUS loan, usually offer lower interest rates and an overall lower cost of borrowing. For more information on the difference between private and federal education loans view our loan comparison chart.
  
• Interest rates for private loans are usually based on an index (such as Prime or LIBOR) plus a margin, depending upon your credit history.
• Private loans are offered by private lenders, like SunTrust. Because these private supplemental loans aren't guaranteed by the federal government, you don't need to fill out any federal forms to apply.
  
  
• Private loans can be used for all education-related expenses. You can borrow up to the cost of attendance at your school, but we recommend that you only borrow what you need in order to limit your amount of debt.