Borrowing money to finance your higher education can be a wise investment; however please consider the following before you apply for a private loan:
- 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.
- Private loans are offered by lenders, like SunTrust Bank. Because these 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, minus other financial aid received. See our private loan brochure.
- Credit guidelines apply in determining your eligibility for private loans.
- 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 typically allow students to apply for a loan with a creditworthy cosigner, such as your parents, which may increase your chance of being approved and obtaining a better interest rate.
Find out more information about the Academic Answer® Loan or Custom Choice LoanSM from SunTrust or Apply Now.