You are strongly encouraged to complete a
FAFSA before applying for a private education loan. Private loans should be the
last resort to bridge any gap between your cost of attendance and your federal, state and institutional financial aid awards. When it comes to paying for college, federal student loans offer several advantages over private education loans. Visit the U.S. Department of Education's
Federal Versus Private Loan website for more information.
Private loans are education loans that are not funded by the federal government. Private loans are offered by banks or credit unions. You apply directly with the lender of your choice; ASU does not recommend lenders. When choosing a lender it may be helpful to ask if they are compatible with ELM. ELM is an electronic student loan management system used to expedite loan applications and disbursements. Lenders not compatible with ELM may take additional processing time. Once the loan is approved, the lender will send the loan information to ASU.
When considering a private loan please keep in mind these important factors:
- Private loans are subject to credit approval and may be denied.
- Interest rates are generally higher than federal student loans.
- Loan fees are generally higher than fees associated with federal student loans.
Please visit
Private Student Loans for instructions on how to apply and information regarding disbursement.
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