Domestic and international students, who have a U.S. citizen or eligible permanent resident as a co-applicant, may qualify for a private loan to help bridge the gap between the student’s cost of attendance and the student’s family resources and financial aid package.
We encourage students and parents to exhaust all Federal loan options prior to applying for a private loan. The Federal loan programs generally offer lower interest rates and fees along with better repayment options.
International students are not eligible for the Federal loan programs.
If a student chooses to pursue a private loan, we recommend comparing the costs associated with various lenders before completing an application. Interest rates, fees, repayment periods, and other benefits can vary significantly between lenders. Often these loans are based on credit-worthiness and approvals are not automatic. The FinAid.org website provides some comparative information regarding private loans as well as www.elmselect.com . The Elm select website will enable you to compare loan offerings and apply online. Elm Select will provide you with the most up to date information regarding a number of different loans. When selecting a loan through any other comparative website, be sure to go to the lender’s specific site to ensure you are aware of the most up-to-date information about the loan.
The Eastman School of Music does not maintain a preferred lender list. As such, the University has no agreements or relationships with any lenders and does not receive any benefit, financial or otherwise, from the use of private loans by students. For more information on the University’s policies, please see our Student Loan Code of Conduct & Policy on Private Lending.
Private Loan Application Requirements
All private educational lenders are required to send three disclosure statements as well as a self-certification form to all borrowers. The borrower must complete and return these statements to the lender before their application process will be complete and for any loan funds to be sent to the student’s school.
Disclosures
The lender will send three disclosures to the borrower.
- Application Disclosure — sent once the lender receives the loan request from the student
- Approval Disclosure — sent once the student’s credit is approved by the lender. Please note that the borrower has 30 days from the receipt of the approval disclosure to notify the lender that the borrower accepts the loan offer.
- Final Disclosure– sent to the borrower after the lender has received the following items:
- acceptance of the approval disclosure by the borrower
- the private loan applicant self-certification form completed by the borrower
- certification of the loan by the borrower’s school
Be aware that the lender are required to wait at least 3 or more business days after the final disclosure is sent before they can send the loan funds to the school.
Private Education Loan Applicant Self-Certification Form
In addition to the disclosures, the lender will also send the borrower a self-certification form. This form is sent once the credit approval is received for the private loan application. The borrower must complete and return this form to the lender.
Keep in Mind
Due to these requirements, all students will need to allow for additional time for loan certification and disbursement processing to occur. This additional time may cause:
- late fees on a student account
- a delay in the receipt of a potential refund
- a delay of student participation in registration and housing lotteries in the event that a financial hold exists on the student’s account
Definitions of Common Loan Terms
- Principal-The loan amount that must be repaid once the loan enters Repayment Status and the amount upon which interest will be charged.
- Interest-The charge made to a borrower for use of a lender’s money. See your promissory note for interest rate terms and conditions.
- In-School Deferment: The period of time when the student borrower is enrolled at least half-time at the Eastman School of Music and is not required to pay loan principal.
- In-Repayment: The period of time after the borrower has either finished their degree (graduated), dropped below half-time status, withdrawn from school, or taken a Leave of Absence during which the borrower is responsible to pay BOTH principal and interest payments on their loans.
- Forbearance: The temporary postponement of payments, such as allowing for an extension of time for making payments or accepting smaller payments than previously scheduled.
- Origination or Supplemental Fee: It will be included in the balance used to calculate interest charges.
- Servicing Company: The company that handles a student’s payments and loan account(s) after the loan(s) disburse to the student’s school account.