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Financial Aid Resources

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Private Student or Private Parent Loans

About Private Loans

Eligibility for most of these programs is based on the creditworthiness of the borrower, and we recommend students apply with a creditworthy cosigner in order to receive the most favorable loan terms. Some private lenders also offer a parent loan option, which allows parents, family members or friends to help students cover education-related expenses so they can focus on their studies without having to worry about financing their education. Review resources we've compiled to understand your credit as you explore this option.

As with any loan, be sure to review all information carefully and contact the lender directly with any questions related to specific terms and conditions. Before pursuing a private loan, you are encouraged to explore all options available to you by filing the FAFSA. Federal student loans available to you may be more favorable than those of private education loans.

To assist you in the search for additional financial resources, we provide you with a private loan comparison tool, Elm Select. ELM Select lists private lenders that have been reviewed by our institution through a Request for Information (RFI) process, and the list is updated annually. Students and families are not required to choose a lender from this list and may select any lender they prefer. If you have an existing banking relationship, you could compare your bank's student loan offerings to those of the provided lenders. It is the responsibility of each borrower and their cosigner to evaluate the eligibility requirements, costs, and benefits associated with each lender before applying and borrowing a private loan.

The private loan process has many steps and it is important that you allow up to four weeks from the time of your application until the loan disbursement is sent to UD. This can impact the status of your student account, so be sure to plan ahead.

Please contact a financial aid counselor if you would like help determining the amount needed to cover your expenses.

Private/Alternative Lender List Information

Selection Process and Criteria Used to Select Lenders

Our Private/Alternative Lender List is intended to provide a comparison of selected lenders in relatively consistent terms, reducing confusion and assisting students and families in making well-informed borrowing decisions. However, this list is not exhaustive, and inclusion on the list does not constitute an endorsement or recommendation by the University of Dayton. Students and parents are free to select any eligible lender of their choice, and the Office of Financial Aid will process private/alternative loans from any lender selected by the borrower.

The lenders included on this list responded to a publicly solicited Request for Information (RFI) for private/alternative student loans. As part of the selection process, the University of Dayton reviewed each lending institution's background, loan program requirements, customer service practices, and program affiliations. Please note that the interest rates, fees, and overall loan costs offered by these lenders may not be the lowest available, and lenders may change their rates, terms, or fees from what was originally presented in their RFI response. The University of Dayton reserves the right to update and adjust its Private/Alternative Lender List at any time to ensure selected lenders provide competitive products and responsible practices that best serve students and families, consistent with our Catholic and Marianist values of transparency, service, and respect for the dignity of each borrower.

Selection Criteria for this Private/Alternative Lender List includes:

  • Lender background and history
  • Loan program requirements and borrower eligibility criteria
  • Customer service quality and accessibility
  • Program affiliations and partnerships
  • Commitment to competitive products and responsible lending practices
  • Alignment with the University's Catholic and Marianist values

Private Education Loan Self-Certification Form

During the application process, the lender will send you three separate disclosure statements, including the federally required Self-Certification Form (.pdf). This form must be submitted to the lender — not the University of Dayton. The Cost of Attendance information you need to complete the Self-Certification Form can be found on your award notification letter or via the Award Overview in your financial aid information on Porches. Please review the information provided by the lender carefully and contact the lender directly with any questions related to a loan program's specific terms and conditions and how they apply to you.
Understanding Your Credit

Credit is an important aspect of your financial wellbeing and our office is committed to helping you know how to build and maintain it. Use these resources for additional information.

What is credit and credit history?
  • Credit refers to someone's ability to borrow money with the promise of repaying it back, often with interest. Borrowing money can be via a credit card, a loan, etc. All of which can help someone build their credit history or score, if well-managed.
  • Someone's credit history is a description of how the borrower uses and handles their money. Credit history can include information regarding how many credit cards someone has, how many loans they have taken out, whether or not they pay their bills on time, etc.
  • Building strong credit history is important. Lenders, landlords, insurance companies, and even potential employers may look at someone's credit history to assess whether or not they will be a reliable borrower, tenant, buyer, or employee.
  • For the sake of educational loans, credit history will be assessed to determine the borrower's reliability to follow their loan repayment schedule.

What is my credit score?
  • Credit score is a number–typically between 300 and 850–that designates a borrower's reliability and likelihood of repayment towards debts. The higher the credit score, the more likely someone has been deemed to pay back their loans in a timely manner; they have been evaluated as lower risk and more creditworthy. Credit scores must be built and maintained over time.

How do I access my credit report?
  • Order your free annual credit report for review at annualcreditreport.com. Only annualcreditreport.com is endorsed by the FTC to fill orders for the free annual credit report you are entitled to under the law; beware of impostor credit reporting sites!

What are some tips to manage my credit score?
  • There are plenty of ways to manage and build your credit score. For instance, to maintain a strong credit score, you should:
    • Pay any and all loans on time.
    • Avoid reaching the limit on your credit card–i.e., don't "max out" your credit card.
      • In fact, keeping balances low, when possible, is a good habit to avoid maxing out your card. It is often advised to only use approximately 30% of your total available credit.
      • Carrying large balances on your credit card can also make you more likely to accrue interest, usually at a high rate. The more interest you accrue, the higher your debt may become.
    • Only apply for credit you need. Applying too regularly within a short period of time may be assessed as potential financial struggles, and deemed unreliable.
    • Set up auto-payments to avoid any possibility of missed repayments.
      • However, do not rely on auto-payments. You should pay as much as you can, when you can. Auto-payments should act as a way to circumvent the possibility of missed payments, which will harm your credit history and score. However, they should not be your sole form of repayment.
    • Review your credit reports for any possible mistakes. Correct or dispute any mistake you may spot.
    • Be patient and persistent. Your credit score will not skyrocket overnight. Maintain good credit and loan habits, and keep building and managing your credit.

I’m applying for a private education loan, what is underwriting?
  • In short, underwriting is a way of evaluating risk. In the case of private educational loans, underwriting measures the likelihood and reliability of the borrower to repay the loan.
  • During the underwriting process, loan lenders often assess factors such as:
    • Debt-to-income ratio: compares monthly debt payment to monthly income
    • School certification: confirms enrollment and amount needed for loan
    • Credit history, and ratio of on-time payments to missed payments
    • Overall credit score
  • Through this risk assessment, lenders can determine the loan terms, including amount, interest rate, repayment schedule, etc. The lower the risk, often the better the loan terms, such as lower interest rates.

Should I apply with a cosigner?
  • Applying with a cosigner can be beneficial depending on your situation. For instance, if you have little to no credit history, a low credit score, or insufficient income, applying with a cosigner may help your chances of getting a loan, especially one with better loan terms.
  • Cosigning means that someone else — often a parent — has a legal responsibility to repay the loan if the borrower is unable to repay it.
  • Lenders will look at the cosigner's credit history, and evaluate risk based on them, as well as the primary borrower. Therefore, cosigning with someone with a strong credit history and low risk may help your chance of loan approval, and may help acquire better loan terms.
  • Cosigners also act as a back-up for missed payments. If the primary borrower is unable to make a payment on time, the cosigner takes up the responsibility. This makes it so that the chances of missed payments is lower. This also helps both the borrower and the cosigner, potentially, build their credit. You should not, however, rely solely on the cosigner. This will make more room for missed payments, if you are both unable to make one at a given time.

Want to learn more?

Visit these resources that were used to develop this content:
Guidance for Student Loan Repayment

You can set yourself up for success by preparing early for student loan repayment. No matter your circumstances, the steps outlined here will walk you through the process and connect you with resources for additional support.

How to Prepare for Successful Federal Student Loan Repayment
  • Use your FSA ID to log in to studentaid.gov.
  • Confirm your student loan servicer.
    • If you don’t know who your servicer is, you can find out by logging on to studentaid.gov and visiting the “My Loan Servicers” section of your dashboard. That section of the dashboard will also give you the servicer’s contact information. Keep in mind, it is possible that your servicer may have changed their name or changed completely to another entity. Here is a list of Federal Student Loan Servicers.
  • Log in to your student loan servicer account to review and update your contact information; this ensures that you will receive important communication about your loans.
  • Reauthorize or select auto debit for monthly payments.
    • If you were previously signed up for automatic debit before the payment pause began, you must reauthorize or select automatic debit through your loan servicer account. If you have direct loans, one of the benefits of signing up for automatic debit is a 0.25% interest rate deduction.
  • Review payment due date and amount.
    • Ensure that you update any banking information and are prepared for the withdrawal of funds.
  • Use tools on studentaid.gov and servicer’s portal to ensure your repayment plan is the best fit; there are a variety of option available for you to consider.

How to Pick the Right Federal Student Loan Payment Plan
  • Log in to your student loan servicer account.
    • It may be necessary to update your contact information with your loan servicer. You should also review your outstanding balances and accrued interest.
  • Consider your repayment strategy and decide whether you need to change plans.
    • Federal Student Aid's (FSA) Loan Simulator is a useful tool for researching the best repayment strategy for you.
  • Research repayment options and confirm the best plan for you.
  • Once you've decided what plan is right for you, log in to your servicer portal or studentaid.gov to select your desired plan.

Tips and Tricks to Prepare for Student Loan Repayment
  • Start early and be ready.
    • Take steps now to prepare for repayment and use the resources listed on this page if you anticipate encountering any challenges in beginning your loan repayment.
  • Review your personal budget to accommodate student loan payments.
  • Be patient and remain diligent.
    • With millions of borrowers transitioning into repayment at the same time, it is possible that loan servicers may be overwhelmed with a high volume of inquiries. It is possible you may not reach your servicer via phone the first time you call, and you may need to call a few times before getting connected. You may be able to find the information you’re looking for on your own on your loan servicer’s website, or by emailing or using live chat features.
  • Keep documentation.
    • Keep good documentation of your financial aid and loan servicer records and communications, such as forms, research, who you spoke to, and detailed notes of what you discussed.
  • Stay alert to avoid scams and review these tips for identifying a scam.

Other Programs to Help with Student Loan Debt

The Department of Education offers a number of programs to assist borrowers and allow those in specific circumstances to have their loans canceled, discharged, or forgiven. Several of these programs include:

  • Public Service Loan Forgiveness (PSLF)
  • Student Loan Deferment and Forbearance
    • Deferment and forbearance are options that allows borrowers in short-term financial distress to temporarily stop making payments.
  • Loan Forgiveness

Federal Loan Information

Undergraduate Federal Loans

Graduate Federal Loans

Helpful Resources

Grace Period Counseling

At University of Dayton, we understand that student loans can be intimidating. That's why we have partnered with Inceptia, a nonprofit organization, to provide you with free assistance on your student loan obligations to ensure you feel comfortable and can be successful in your loan repayment.

Inceptia may be calling to help you with next steps in your repayment journey. Their friendly counselors are there to help you every step of the way. While you are in your grace period, they might reach out to you to answer questions you may have on your repayment options.

The Inceptia counselors are there to help you with every step by staying in touch with you via phone calls, letters, and/or emails. They will not be collecting money from you. Inceptia's nonprofit purpose is to help you find answers to your questions and solutions to your issues. We encourage you to visit Inceptia's Student Knowledge HQ website at HeroKnowl.org.

Sources

The information above was provided by the National Association of Student Financial Aid Administrators (NASFAA), © 2023.

The National Association of Student Financial Aid Administrators (NASFAA) is the only national, nonprofit association with a primary focus on information dissemination, professional development, and legislative and regulatory analysis related to federal student aid programs authorized under Title IV of the Higher Education Act of 1965, as amended. Our membership consists of more than 29,000 financial aid professionals at nearly 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the United States.

NASFAA. “Student Loan Repayment Toolkit.” Advocacy, Policy & Research, 8 May 2023.
Student Loan Code of Conduct

As a participant in the Federal Direct Loan Program, the University of Dayton will issue Federal loans including the Direct Subsidized and Direct Unsubsidized Student Loans, the Direct Parent PLUS Loans, and the Direct Graduate PLUS Loans. Additionally, the University of Dayton will process private educational loans for students or parents who request these (via a credit application).

In order to comply with the 2008 Higher Education Opportunity Act, the University of Dayton adheres to the Student Loan Code of Conduct. The guidelines listed are principles that ensure the integrity of the student aid process and ethical conduct of all University of Dayton employees in regard to student loan practices.

1. Revenue Sharing

The University of Dayton and its employees will not enter into any type of revenue-sharing arrangement with any lender, guarantor or servicer. The term “revenue-sharing arrangement” refers to an arrangement between an institution and a lender where a lender provides or issues a loan that is made, insured, or guaranteed to students under the Higher Education Act attending the institution or to the families of such students; and the institution recommends the lender or the loan products of the lender and in exchange, the lender pays a fee or provides other material benefits, including revenue or profit sharing, to the institution, an officer or employee of the institution. All loans are processed without regard to lender or mode of transmission (i.e., electronic or paper).

The University of Dayton will neither recommend a private loan lender nor accept material benefits including revenue or profit sharing to the institution, an officer, or an employee of the institution or an agent.

2. Gifts

University of Dayton employees are prohibited from soliciting or accepting any gift from a lender, guarantor, or servicer of education loans.

  • Gifts include any gratuity, favor, discount, entertainment, hospitality, loan or other item. This includes a gift of services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has incurred.
  • Gifts to family members of a University of Dayton employee are considered to be a gift to the employee if the gift is given with the knowledge and acquiescence of the employee and there is reason to believe the gift was given because of the official position of that employee.

3. Contracting Arrangements

Employees of the University of Dayton are prohibited from accepting any fee, payment, or other financial benefit—including the opportunity to purchase stock—from any lender or affiliate of a lender as compensation for consulting arrangements or other service contracts related to education loans.

4. Preferred Lender Status

The University of Dayton will certify private loans from any lender. We do provide a list of private/alternative loan lenders that are reviewed via a formal RFI process and are updated annually. Our lender list complies with all requirements of a preferred lender arrangement, as defined in federal regulations, and is compiled without prejudice and for the sole benefit of the students attending the institution. The information included about lenders and loan terms is transparent, complete, and accurate. The process through which lenders are selected is fully and publicly disclosed. Borrowers will not be auto-assigned to any particular lender. A borrower's choice of a lender will not be denied, impeded, or unnecessarily delayed by the institution, even if that lender is not included on the lender list.

5. Interaction with Borrowers

All decisions will be made by the borrower in his/her independent review of borrower benefits and lender services. The University of Dayton will not refuse to certify, or delay certification of, any loan based on the borrower’s selection of a particular lender or guaranty agency.

6. Opportunity Pool Loan

The University of Dayton will not request or accept from any lender any offer of funds to be used for private education loans (defined in section 140 of the Truth in Lending Act) including funds for an opportunity pool loan in exchange for the University of Dayton providing concessions or promises regarding providing the lender with a specified number of loans made, insured or guaranteed; a specified loan volume of such loans; or a preferred lender arrangement for such loans.

7. Staffing Assistance

The University of Dayton will not request or accept from any lender, guarantor, or servicer of student loans any assistance with call center staffing or financial aid office staffing.

8. Advisory Board Compensation

University of Dayton employees who serve on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors, are prohibited from receiving anything of value from the lender, guarantor, or group of lenders or guarantors, except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory board, commission, or group.
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