What Are Private Education Loans

• Private educational loans are offered by private lenders (who have no relationship with Columbia College Chicago) to assist parents and students with educational and living expenses.  Private educational loans frequently have higher interest rates and origination fees than federal educational loans, making them more costly.  You should consider this option only after exhausting all federal, state, and institutional financial resources. Therefore, we strongly encourage all students to first apply for the Free Application for Federal Student Aid (FAFSA) before utilizing these loan programs.
• If no other financial resources are available to fill the financial gap, research all loan options before choosing a private educational loan. It is important to keep written records of all forms, applications, and correspondence with your lender, especially regarding discounts and special incentives, for the entire life of your loan(s).
• In order to increase protection for our student loan borrowers, ALL students who do not currently have a Free Application for Federal Student Aid (FAFSA) on file with Columbia College Chicago, will need to complete a Private Educational Loan Processing Agreement before we will process a private educational loan certification request.

What Are “Direct-to-Consumer” Private Educational Loans?

• A growing number of lenders are marketing private educational loans directly to students and their parents through television, radio, direct mail and internet.  Direct to Consumer educational loans are disbursed directly to the student or parent rather than the college or university.  While initially designed to cover college costs, these loans can actually encourage greater debt with the promise of ‘no borrowing limits’, low interest rates and deferred repayment until after graduation. These loans can begin a cycle of overspending that can stunt a student's credit history before their first job.
• We strongly encourage all students and their families to first apply for federal student loans by completing the Free Application for Federal Student Aid (FAFSA) before utilizing these loan programs.
  

There are several things you must keep in mind should you receive solicitation for a ‘Direct to Consumer’ educational loan.

• Direct-to-Consumer educational loans usually have higher fees, higher interest rates, and less favorable repayment options than school certified loans.

When Columbia College Chicago is named as the designee for such loan(s):

• Columbia College is not required to certify the loan, but the loan must count as a resource and it will be included in your total financial aid award package.
• These educational loans may result in a loss of grant and scholarship funds and may negatively impact your financial aid package if they are taken out for an amount that exceeds your financial aid eligibility for the award year.
• If you intend to take out a Direct-to-Consumer educational loan, please contact Student Financial Services before pursuing this option to discuss the impact this will have on your current financial aid award package.
  
• For questions or concerns regarding the Private loan process, students and parents should contact Student Financial Services at 1-866-705-0200 or email us at sfs@colum.edu