A private loan is a nonfederal education loan from a bank, credit union, state agency, or other private lender. The borrower pays back the principal plus interest and fees. The lender, not the federal government, sets the terms and conditions.
SF will only certify and disburse a private loan for a student enrolled at least half-time (6 credit hours). Individual lenders may set their own enrollment, credit, and academic progress requirements on top of that.
Cost of Attendance Cap
Private loans count toward the Cost of Attendance cap on total aid, even though they're nonfederal.
A student who has already received federal aid, scholarships, or other funding can borrow a private loan only for the remaining gap between total aid and the cost of attendance. If a lender approves more than that gap, SF certifies the loan only up to the cap, with the underlying figures set by Cost of Attendance.
Choosing a Lender
SF doesn't recommend specific private loan lenders and doesn't keep a preferred lender list.
A student comparing lenders can use FastChoice, a lender-neutral online platform that lists private education loan products in no particular order. The student picks a lender and applies directly with that lender. SF isn't involved in the choice.
The Private Loan Process at SF
Private loans move through four stages.
Application. The student applies directly with the lender. The lender runs a credit check and may require a cosigner based on the student's credit history. The lender sets the approval terms, interest rate, and loan amount.
Certification. After the lender approves the loan, the lender submits the application to the processor that handles private educational loans for SF. The processor sends the loan information to the Financial Aid Office. The office reviews the loan against the student's other aid and the cost of attendance and determines how much can be certified within federal rules. That certified amount goes back to the processor, and the lender finalizes the loan. SF certifies private loans regardless of FAFSA status. A processed FAFSA isn't required.
Loan posted to account. Once certified, the loan posts under Awards in the Financial Aid Portal [WEB LINK: eSantaFe login] with the amount available for each semester. If the loan exceeds tuition and fees, a fee deferment is generated. If funds remain after tuition and fees, the student can also charge books and supplies through book charging.
Disbursement. When the lender sends funds to SF, the Financial Aid Office reviews the student's file, confirms enrollment, and adjusts the disbursement if the cost of attendance has dropped since certification. Once funds release, the loan posts against tuition, fees, and any book charges. Any remaining balance refunds to the student through the standard disbursement process.
Timing Considerations
Funds from the lender arrive on the lender's schedule, which varies and may not match SF's standard disbursement calendar. Private loan disbursements often begin later than federal aid as a result, though the loan follows the same general disbursement process as other aid.