FAQs

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• Loan Basics
• Application Requirements
• Credit Information
• School Information
• Repayment Information

Loan Basics

Why choose a private student loan?
Today there are many college financing options at your disposal: scholarships, grants, federal loans, as well as the money you've saved. But the costs of college keep going up, and many families are finding themselves short, despite the financial aid and the years of saving. That's where a private student loan can help.

As an alternative to financing your Expected Family Contribution (EFC) by borrowing against home equity, or tapping into other savings, private student loans offer flexible repayment options to creditworthy borrowers.

With a private student loan, the money can be used to cover the cost of tuition, as well as education-related expenses specified by your school. So you'll know you're covered for all those things that add up fast over the course of a semester, like books, lab fees, room and board, and transportation costs.

Can I apply for this loan?
A Custom Choice Loan is for a student who is enrolled at least ½ time in a degree granting program at an eligible school.

How much can I borrow?
The maximum loan amount is determined by your school's cost of attendance, minus any federal loans, scholarships or grants, up to $65,000.

The aggregate maximum student loan debt allowed is $150,000 (includes all student loans and any unsecured, deferred consumer debt). The minimum loan size is $1,001*

* The minimum loan amounts are higher in these states: Alaska: $5,001, Colorado: $3,001, New Mexico: $2,501, Oklahoma: $4,501, Rhode Island: $5,001, South Carolina: $3,401. The Custom Choice Loan is not available to students whose permanent residency state is IA, IL, TX or WI, or for cosigners whose permanent residency state is IL.

Can I use this loan for expenses other than tuition?
Yes. You can use your loan to cover education-related expenses included in your cost of attendance as defined by your school, which can include expenses such as:

• Tuition and school fees
• Books and school supplies
• Room and board
• Lab fees
• A computer
• Transportation to and from school

Why does a cosigner help?
Applying with a cosigner who has good credit and positive income can help you satisfy credit criteria and may increase your chances of passing the initial credit review. Most students will need a cosigner to qualify. In a co-signed application, both you and your cosigner intend to (a) jointly apply for credit and (b) be jointly liable for the requested loan.

Where do you send the funds?
The payment is directly disbursed to the school. We send the electronic payment or check—made out to you and your school—to your school's financial aid office and they will apply it to your school expenses.

Are there out-of-pocket fees I have to pay up front?
No, there are no out-of-pocket fees up-front.

Application Requirements Return to top

How do I know if I am eligible for this loan?

If applying with a cosigner, the student must:

• Be at least 17 years of age with a cosigner who is legal age of majority. Age of majority is determined by state of permanent residence: 18 years of age in most states, 19 years of age in Alabama, 19 years of age in Nebraska if you are a ward of the state, and 21 years of age in Mississippi and Puerto Rico.
• Be enrolled in an eligible school, at least ½ time
• Be a U.S. citizen or permanent resident
• Have not filed for bankruptcy within last 10 years
• Have no record of student loan default

A cosigner must:

• Be age of majority in state of residence, but at least 18 (19 years of age in Nebraska (wards of the state only) and Alabama, and 21 years of age in Mississippi and Puerto Rico)
• Have proof of income
• Have not filed for bankruptcy within last 10 years
• Have good credit history overall
• Be a U.S. citizen or permanent resident
• Have no record of student loan default

A student applying alone must:

• Be age of majority in state of residence, but at least 18 (19 years of age in Nebraska (wards of the state only) and Alabama, and 21 years of age in Mississippi and Puerto Rico)
• Be enrolled in an eligible school, at least ½ time
• Have proof of income
• Have not filed for bankruptcy within last 10 years
• Have good credit history overall
• Be a U.S. citizen or permanent resident
• Have no record of student loan default

What is the difference between a U.S. Citizen and a Permanent Resident?
U.S. Citizen - A person who is born in the United States, including the lower 48 states, Alaska, Hawaii, Puerto Rico, Guam, and the U.S. Virgin Islands; or who became a citizen through naturalization; or who is born outside the United States to U.S. Citizen parents under qualifying circumstances (derivative citizenship) and who has not renounced U.S. citizenship.

Permanent Resident - Any person not a citizen of the United States who is residing in the U.S. under legally recognized and lawfully recorded permanent residence as an immigrant. Also known as "Permanent Resident Alien", "Lawful Permanent Resident", "Resident Alien Permit Holder", and "Green Card Holder."

Credit Information Return to top

Why is a credit check necessary?
The credit check serves two main purposes. First, it is used to verify the identity of all people on the application. Second, it's used for qualification purposes and helps us offer you the best pricing we can based on your credit history.

What if I have no credit history?
Students will often apply with a cosigner to help meet creditworthy guidelines and may increase chances of passing the initial credit review. If a student does not have credit history, we recommend applying with a cosigner who does.

School Information Return to top

In order to apply for a loan, do I need to know what school I'm attending?
Yes, you need to be enrolled at least ½ time as a student at an eligible school.

Repayment Information Return to top

Is there a penalty for pre-payment or paying the loan off early?
No, you can pay your loan off early regardless of your repayment terms without any penalty. You will only be charged the amount of interest that has accrued on the loan until the day the loan is paid off.