Private Education Loans
Private credit-based educational loans are offered by private commercial lenders or state loan authorities for the purpose of financing college costs. Qualifications and eligibility criteria vary by lender. Most lenders require a credit-worthy U.S. borrower and sometimes a co-borrower. The interest rate and fees are determined by your credit history, your debt-to-income ratio and that of your co-signer. The interest rates for most private educational loans are variable and are most often based on a range using Prime or the London Interbank Offered Rates (LIBOR) as a base and add an additional percentage based on the borrower's credit. The current Prime and LIBOR rates are available at the Federal Reserve Statistical Release.
Brown University is committed to offering a variety of options to help students and their families meet their college expenses. In an effort to assist students and families in choosing a lender, the Office of Financial Aid has compiled a list of institutions we consider to offer competitive interest rates, fees, quality customer service, a variety of loan products, and loan repayment options. The Office of Financial Aid will survey lenders annually to provide information regarding products and benefits. Be assured that Brown receives no incentive, financial or otherwise, from any lender whether or not they are designated as preferred.
You are under no obligation to borrow from one of these lenders and you are free to choose to borrow from a lender who is not on the list. If you would like to borrow from a lender not on this list, you can simply select the lender of your choice and apply directly with that lender. The lender will be responsible for getting your loan information to us. The University will certify a loan with ANY lender you choose. Students will suffer no penalty for choosing a lender that is not on the list.
There are many factors students and families should consider before making a borrowing decision. Visit the Private Loan section of the Financial Aid Office website for details.
Refinancing Private Loans
Several private companies now offer borrowers the option to refinance their private education loans. There are some things to consider before you make a decision about refinancing. Learn more about what you should know before you decide.