Complete the FAFSA and review grants, scholarships, savings, school aid, and eligible federal loans before using private credit.
Start with the smallest responsible gap
Use the school’s current cost of attendance, then subtract grants, scholarships, savings, affordable family contributions, work-study or earnings, and federal aid. A private loan should cover only the remaining amount. Repeating an avoidable gap for four years can turn a manageable first-year decision into an expensive cumulative balance.
Do not use the published sticker price when you have an actual aid offer. Separate grants from loans and separate renewable aid from one-time awards. If the offer is unclear, ask the financial-aid office for a written annual-cost breakdown.
Compare APR, capitalization, and repayment timing
APR is designed to express borrowing cost more completely than the interest rate alone, but an APR still does not describe every practical difference. Ask when interest begins, whether unpaid in-school interest capitalizes, which payments are required before graduation, and what happens after a deferment or forbearance.
A lower initial variable rate can rise. A longer term may lower the monthly payment while increasing total repayment. Model at least the expected scenario and a stress scenario before choosing.
Read the eligibility and cosigner rules
Many undergraduate borrowers have limited credit history and may need a qualified cosigner. A cosigner is legally responsible for the debt. Compare whether release is available, the earliest possible payment count, and every additional credit, income, graduation, or documentation condition.
“Release available” does not mean release is automatic. If the cosigner expects to leave the loan, treat the full release policy as a core product term.
Value protections before they are needed
Private loans generally do not carry the same repayment plans, subsidies, discharge paths, or forgiveness possibilities as federal loans. Compare grace periods, deferment, forbearance, reduced-payment programs, death or disability provisions, and who services the loan. Missing public information should be treated as unknown—not as a benefit.
Use the final disclosure, not a comparison-page summary
Comparison pages are useful for narrowing the field. The lender’s current application disclosures, approval terms, and promissory note control the actual loan. Save copies, verify the rate type and repayment election, and confirm that the amount matches the school-certified gap.
Primary sources
Sources were checked during the September 11, 2026 review. Provider terms and federal rules can change.
Next decision
Use a calculator to test the amount and full cost, then compare public lender features. Final eligibility, rate, and loan terms come only from the authorized provider.