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Private Educational Loans and Payment Plan
Private Educational Loans
Private Educational Loans are borrowed in the student’s name and need to be applied for well in advance. They often require a credit-worthy cosigner. Due to disclosure requirements and additional forms, be sure to plan ahead and apply for the amount you'll need for the entire academic year (the loan will disburse in two equal disbursements at the start of each semester).
Please consider the following suggestions carefully before applying for a Private Loan:
- Compare your interest rate with the Federal Direct PLUS loan. This loan is in the parent’s name and its fixed 7.9% interest rate and other benefits may be a better option. The comparison chart may be helpful in your decision.
- Apply with a credit-worthy co-signer. Most lenders will require a co-signer and fees and interest rates may be higher without a cosigner.
- Interest rates are variable or fixed (depending on the lender/product) and depend upon a credit check.
- Shop around for a private loan! With the same student and co-signer, your interest rate could vary widely between lenders. If you shop around and apply with a few different lenders within a 30 day period, your FICO should not be negatively affected.
- Budget for the fact that your loan payment will be 3-4% higher than the current monthly repayment rate (because interest rates are at historic lows). Expect your monthly payments to increase as the economy improves.
- Private loans may not be discharged in bankruptcy or death.
- Payment is sometimes deferred while the student is in school, depending on the lender but interest accrues while in school.
- Consider using the “interest only repayment” option rather than deferring the principal and interest while in school. Keeping up on interest payments will:
- Help establish the student’s credit history earlier
- Avoid interest capitalization
- Get a lower interest rate from most lenders
- Take advantage of any auto-debit discounts immediately, if offered by lender
Geneva’s Preferred Lender Arrangement
- The Higher Education Opportunity Act of 2008 mandated a number of significant changes to private educational loan disclosure requirements. In order to comply with these regulations, we have created a preferred lender list to give students a starting point in selecting a lender.
- Because private loan interest rates are based on credit and each lender evaluates credit differently, it is the responsibility of you (the consumer) to assess the advantages and disadvantages of these offerings and to make your selection based upon those features that best meet your financial needs. If you are a member of a credit union, you may also want to check with them, as they often have competitive products as well but are not on our preferred list.
- Please know you have the right to use the lender of your choice and are not limited to those on this list.
- What terms, conditions and provisions make these loans beneficial to students?
- Reputation and track record of lender among Geneva students in the past
- Quality of lender customer service and support to students and school
- Availability to students nationally without membership
- Competitive terms and conditions
- Efficient processing for both students and school
- Click here for a list of lenders
Before signing for the loan, please be sure you understand the interest rates and fees associated with your loan. The lender is required to provide you with several disclosures. Please read these carefully and click here for additional information about what is required from your lender.
You will also need to accept the loan as requested by the lender and complete a Self Certification Form before the loan is approved. For help in completing this form, click here. Once your loan is approved and all requirements are met, the lender will contact the Financial Aid Office. Please keep in touch with your lender throughout the process to ensure timely processing.
Payment Plans (Traditional Undergraduate Only)
The Student Accounts Office, located in Old Main, handles all financial matters related to payment of student bills. You will be billed on a semester basis, and monthly statements will be sent to your home address.
A number of convenient payment plans administered through Sallie Mae® are available to full-time traditional undergraduate students. Click here for information about payment plans.
If you have questions about payment plans, contact:
Student Accounts
3200 College Ave
Beaver Falls, PA 15010
727-847-6545 or 724-847-6115
student-accounts@geneva.edu