Private Loans

Private Loans

Private Loans should be considered as a last resort when financing your college education. We strongly encourage you to borrow from the Federal Student Loan program before considering Private Loans. Additionally, graduate students are encouraged to apply for a Graduate PLUS Loan before applying for Private Loans. A graduate student should contact the Financial Aid Office if he/she is interested in applying for a Graduate PLUS Loan. 

Generally, you will receive a better interest rate on Federal Student Loans than with Private Loans. However, if you need additional funding beyond your Federal Student Loan eligibility, Private Loans may help you cover unmet educational expenses.

Private Loans are made by banks and other financial institutions and are subject to their terms. Eligibility for these loans requires a credit check and students are often required to have a co-signer to qualify

Middle Tennessee State University does not endorse or recommend any specific Private Loan product. In determining which Private Loan is best for your needs, we recommend you research and compare loan interest rates, fees, repayment options, and eligibility requirements.

Application Process:

 

STEP 1:

 

Many Private loan lenders provide an online application. You can review different lenders' web sites by typing 'Private Loans' into the search engine. After you carefully compare the different lenders' loan information, you may want to verify the following information.

 

1. Does the lender process Private Loans with Middle Tennessee State University?
2. Does the lender provide an online application?
3. Does the lender process Private Loans through ELM Resources or do they send a paper form for the school to certify? Lenders who process Private Loans through ELM Resources send an electronic certification request and send the loan funds by Electronic Funds Transfer (EFT).
4. What will my interest rate be?
5. Are there any fees that are deducted from the loan before I receive my loan funds?
6. Do they require that I start repaying the loan while I am in school?
7. How many hours must I be enrolled to receive the loan?

 

STEP 2:

 

After you apply, the lender will send you three separate disclosures during the Private Loan process. You must sign and return these disclosures to the lender in a timely manner.

 

Also, you are required to complete a Self-Certification Form. The lender will provide you with this form or you can pick up a form in the Financial Aid Office. You are required to list your Cost of Attendance (COA) and any aid that you were offered at MTSU. Your financial aid will show on RaiderNet. After clicking on RaiderNet and then the Financial Aid tab, select ' Awards' then select ' Award for Aid Year'. You can also come by the Financial Aid Office and we will give you this information. You will then mail the completed Self-Certification Form back to the lender.

 

 

STEP 3:

 

After you are pre-approved for the Private Loan and have returned any required paperwork to the lender, the lender will send a certification request either by paper form or electronically (if ELM Resources is used) to the Financial Aid Office. The Financial Aid Office certifies maximum loan eligibility up to the Cost of Attendance minus other financial aid and resources. Students admitted to the Aerospace program and enrolled in flight labs should contact the Financial Aid Office so that their Cost of Attendance can be updated to include the increased flight lab costs.

 

STEP 4:

 

If you have submitted all required paperwork and the Financial Aid Office has completed the certification request, the lender should be ready to disburse your loan funds to MTSU depending on your loan period. If you have a Fall/Spring loan period, then half of the loan will be disbursed equally between the fall and spring semesters. If the lender sends the loan funds by EFT, then the funds will automatically be credited to your student account. If the lender sends the loan funds by check, you will be required to come to the MTSU Business Office to endorse the check. The MTSU Business Office will email you when your check is ready to be endorsed.

 

Because it can take up to 4 - 6 weeks for a Private Loan to be processed, we recommend you apply at least 7 weeks before the loan funds are required.