Private Education Loans

Exhaust federal aid before applying for a private loan. Private loans carry fewer borrower protections, are credit-based, and cannot be consolidated with federal loans. Complete your FAFSA and accept all available Federal Direct Loans first.

Private education loans are funded by banks, credit unions, and national lenders — not the federal government. They require a separate application, a credit check, and typically a credit-worthy cosigner. Most undergraduate students will not qualify without one. Private loans may be used to bridge the gap between your total Cost of Attendance (COA) and all other aid you have received.

Review the key differences between federal and private loans on StudentAid.gov before proceeding.

View Iowa State’s Preferred Lender List Compare Loan Options

Before You Borrow

How much can I borrow?

Your maximum is your Cost of Attendance minus all other aid received (grants, scholarships, federal loans, Work-Study). Find your COA in Workday under Student › Financial Aid › Financial Aid Offer.

Total COA − All Other Aid = Your Maximum

If your COA doesn’t cover your actual costs, submit a COA adjustment request before applying for a private loan.

Enrollment requirement

Most lenders require at least half-time enrollment in a degree-seeking program. Some lenders accommodate less-than-half-time or non-degree students — confirm this with your lender before applying.

Cosigner requirement

Most undergraduate students will need a credit-worthy cosigner due to limited credit history. A small number of lenders offer no-cosigner options. Use the preferred lender list or contact the Office of Student Financial Success for guidance.

Loan period & term dates

Your loan period must align with a specific academic term — you cannot span across academic years (e.g., Spring into Fall). Summer loans must always be applied for separately. Refer to the Academic Calendar for term start and end dates.

Past-due balances

Not all lenders allow borrowing for a prior-term balance. Before applying, confirm your lender accepts past-due balance applications. On ElmSelect, use the filter button (top right) to show only lenders that permit this.

Interest rates & fees

Private loan rates are credit-based and not guaranteed. Rates may be fixed or variable — variable rates fluctuate with the market monthly or quarterly. Always ask each lender for: the interest rate type, origination fees, repayment fees, and the total cost of the loan. Consider your expected post-graduation income when evaluating repayment.

How to Apply

Allow 4–6 weeks from approval to disbursement. Start early.

Research and compare lenders. Start with Iowa State’s preferred lender list on ElmSelect. You are not required to use a preferred lender — Iowa State will certify loans from any lender that meets program criteria. Compare interest rates, fees, repayment options, and borrower benefits before choosing. Visit the Office of Student Financial Success for a side-by-side loan comparison guide. You may also check your home state’s student assistance agency or local credit unions.
Complete the lender’s application. Have your enrollment information and cosigner details ready. The lender will run a credit check.
Lender makes a credit decision. If approved, the lender submits your application to Iowa State for certification within 3–5 business days.
Iowa State certifies your loan. Iowa State reviews and certifies your application within 3–5 business days of receipt. If there are questions, Iowa State will contact you at your Iowa State email address.
Funds are disbursed to your U-Bill. Your U-Bill is your Iowa State student account balance. Federal law requires a cancellation window of up to 10 business days before the lender can release funds to Iowa State — this is why the full process takes 4–6 weeks. If your loan is not applied to your U-Bill in full, see the Private Loan Counseling requirement below.

Private Loan Counseling Requirement

All undergraduate students borrowing a private loan at Iowa State for the first time are required to complete Private Loan Counseling (PLC) through the Office of Student Financial Success. Your loan funds will not be fully applied to your U-Bill until this is complete.

Disbursement hold details

Single-term loans: The full loan amount is placed on hold until PLC is complete.

Fall/spring loans: Your spring disbursement is held until PLC is complete after the fall term.

PLC cannot be completed before Iowa State receives your loan application. Do not wait — complete it as soon as you receive notice from Iowa State.

Graduate students and returning private loan borrowers are not required to complete PLC, but may request it at any time. Learn more about PLC.

Questions to Ask Every Lender

Before committing to a loan, ask each lender:

What is the interest rate — fixed or variable?
Is there a cap on how high the variable rate can rise?
What origination or repayment fees apply?
When does repayment begin?
What repayment plans are available?
What is the total cost of the loan (principal + interest + fees)?
Are there discounts for autopay or on-time payments?
What deferment or forbearance options exist?
Is there a cosigner release option?
Do you allow borrowing for a past-due balance?
Do you require Satisfactory Academic Progress (SAP)?
Do you lend to less-than-half-time students?

Not Meeting SAP? Some Lenders Still Qualify You

Some lenders require students to be meeting Iowa State’s Satisfactory Academic Progress (SAP) requirements. The following Iowa State preferred lenders do not require SAP:

This list is subject to change. Confirm SAP requirements directly with your lender.

Need Help?

The Office of Student Financial Success offers free one-on-one counseling to help you compare loan options and borrow responsibly. Contact them at financialsuccess@iastate.edu.

For certification questions, contact the Office of Student Financial Aid at financialaid@iastate.edu or (515) 294-2223.