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Ascent Blog

How to Apply for Private Student Loans & What You Need

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College enrollment is on a roll—undergraduate enrollment at four-year institutions grew 2.5% last year, while graduate enrollment grew 3%. Tuition is also on the rise: You could pay an average of $43,350 for a private, four-year college. If you’re one of the many students excited to get a higher education, you might be wondering, how do I apply for a private student loan? Would you need a cosigner, or could you go solo? 

If this sounds like you, Ascent is here to help. Below is all the information you need on how to apply for private student loans for college.

Before You Apply for a Private Student Loan…

If you haven’t already, start with the Free Application for Federal Student Aid (FAFSA) to see what federal aid you qualify for. Federal loans often come with benefits like low interest rates and income-driven repayment plans. However, they do have some drawbacks, like borrowing limits based on your Student Aid Index (SAI), which calculates your financial need, strict deadlines, and limitations on eligible schools.

If after completing the FAFSA, you and your family realize your federal loans, grants, and scholarships won’t cover all of your college expenses, private student loans can fill the gap. Private lenders set their own terms, which means you could qualify for higher borrowing amounts or customized repayment options, and there are no deadlines.

When to Apply for a Private Student Loan

Oftentimes, federal financial aid doesn’t fully meet your needs—especially if you have a higher SAI. Private student loans can help cover your total cost of attendance (COA), including tuition, room and board, books, and other expenses. Even if you don’t need the full amount right away, having access to extra funds can help with unexpected costs during the school year. 

Once you’ve reviewed your federal aid package and you know exactly how much more you’ll need, it’s time to apply for private student loans.

5 Steps to Apply for a Private Student Loan

Private student loans offer flexibility and options that may not be available with federal aid. They can help you cover additional costs, choose repayment terms that fit your needs, and sometimes offer perks like interest rate discounts and career resources, like Ascent’s exclusive benefit of success coaching and training, AscentUP. Here’s how to apply for private student loans:

1. Determine If You Qualify

Private lenders evaluate your credit history, income, and enrollment status before approving your application. If you don’t meet the requirements, a cosigner with a strong credit history can increase your chances of approval. (A cosigner is usually a parent, grandparent, guardian, or another family member who’s willing to help.)

First, you or your cosigner will need a good credit score. Most lenders look for a credit score of 670 or higher, though some may have lower thresholds. You’ll also need to be enrolled at least half-time in an eligible program. Some lenders may require that you be a U.S. citizen or permanent resident. 

For Ascent loans with a cosigner, you’ll need to be enrolled in a U.S.-based school, but international and DACA students may be eligible. For Ascent loans without a cosigner, you’ll need to be at least 18 years old, and a U.S. citizen, permanent resident, or DACA student enrolled in a U.S.-based school. For both types of loans, credit requirements apply. For more information, please see here.

2. Calculate How Much You Need to Borrow

When researching how to apply for private student loans, you might also wonder how much you can borrow. The maximum amount you can borrow may depend on your credit score, whether or not you’re using a cosigner, the cost of tuition, and the lender. Keep in mind that you don’t want to borrow more than you will need to cover your expenses, as borrowing extra can cost you more in interest later. 

Before applying, figure out how much you’ll need by calculating your COA, including not just tuition but also other expenses like room and board, books, transportation, and personal costs. Subtract any grants, scholarships, and federal loans you’ve already been awarded to determine the remaining amount.

For Ascent loans, you can borrow up to the total cost of your school’s attendance. The maximum is $200,000 for undergraduate loans and $400,000 for graduate student loans. For credit-based undergraduate and graduate loans the maximum you can borrow for the year is $200,000. 

Remember that while borrowing $200,000 with Ascent may be possible for an undergrad loan, you may not get that full amount. If your college costs less than $200,000 or you have federal loans, you may receive less than what you applied for. The exact amount you get depends on your unique situation. 

3. Compare Lenders

Choosing the right lender is an important step in how to apply for private student loans. Start by comparing interest rates, which will have the biggest impact on how much your loan costs over time. Private loans may offer fixed rates, which stay the same throughout the life of the loan, or variable rates, which start lower but can change based on market conditions. 

Next, consider the length of the repayment period. Shorter terms mean higher monthly payments but less total interest paid, while longer terms have smaller payments but cost more over time. Look for repayment flexibility, like the ability to make interest-only payments or pause payments, and benefits like loyalty rewards or discounts for enrolling in autopay. And compare different types of loans, including private parent loans or outcomes-based loans.

To make comparing lenders easier, use online tools where you can view rates and terms side by side without affecting your credit score. Taking time to compare lenders can help you find a loan that meets your needs and saves you money.

Tip: Check out our comparison guides to see how Ascent stacks up to lenders like Sallie Mae and College Ave.

4. Gather the Required Documentation

Once you’ve chosen a lender, gather the documents you’ll need to apply to make the process easier and faster. How you apply for a private student loan varies, but most lenders require:

  • A government-issued ID (like a driver’s license or passport) and your Social Security number.
  • Proof of income, such as recent pay stubs, tax returns, or bank statements. If you’re applying with a cosigner, they’ll need to provide similar documents.
  • School enrollment verification, like an acceptance letter or class schedule, along with your program details and sometimes your school’s Federal School Code.
  • Cost of attendance estimates, including tuition, room and board, books, and other expenses. 
  • Your federal financial aid award letter to show how much aid you’re already receiving.

Double-check your lender’s specific requirements in case they ask for additional items, like academic transcripts or references. Then organize your documents in a folder—either physical or digital—so you have easy access to what you need for your private student loan application. Having everything in place before you start will make the application process much easier.

5. Submit Your Application

You’ve gathered all the information and documents you need. So, how do you apply for a private student loan? Most lenders offer an online application that asks for personal information, school details, and the amount you’d like to borrow. 

Before submitting your application, double-check all the information you entered and carefully review the loan terms. Once you’re comfortable with the interest rate, repayment term, and any fees, submit your application. The lender will perform a hard credit check, which may temporarily lower your credit score by a few points.

Some lenders may offer instant pre-approval, while others will respond to your application within a few days. If your application is approved, carefully read the loan agreement before signing to make sure the terms match what you were promised. Once signed, the lender usually sends the funds directly to your school.

If your application is denied, this may be due to low credit scores or insufficient income. Depending on the issue, you may be able to reapply with a new cosigner or work on improving your credit score before applying again. Staying informed and organized can help you successfully complete this final step.

Can You Get a Private Student Loan at Any Time?

One of the things you might think about when considering how to apply for private student loans is deadlines. Unlike FAFSA, there is no deadline to apply for private student loans. You can get them any time during the year. However, your school likely does have tuition deadlines, so you’ll want to plan around these deadlines to make sure you can pay your bills.

Also keep in mind that lenders do credit checks to determine what you qualify for. A soft credit check doesn’t impact your credit score. However, before making the final decision, the lender will do a hard credit check that impacts your score, so try not to apply for other loans or credit cards at the same time.

How Long Do Private Student Loans Take to Process?

How long it takes to get a loan depends on the lender. At Ascent, reviewing your criteria and documentation may take 1-2 business days. We will then send you loan documents for you to review and sign. These will outline the terms of your loan. Once you have signed them, the loan will be disbursed to your school.

What If I Have Bad Credit?

If you don’t have great credit, there are still options to qualify for a private student loan. Applying with a cosigner who has strong credit is one of the most common solutions. Some lenders also work with borrowers who have lower credit scores, but you may pay higher interest rates. You can (and always should!) also look into non-borrowing options like grants, scholarships or work-study programs, which don’t require repayment.

Apply for Private Student Loans through Ascent

Learning how to apply for private student loans is an important step toward achieving your educational dreams. Ascent understands the importance of those dreams. We think loans should expand your possibilities, not limit them. That’s why we offer a variety of loans and an easy application process. Our loans may be available with or without a cosigner, also known as non-cosigned loans. We also offer bootcamp loans for students who want to master cutting-edge coding programs. 

Apply for a loan today to ascend your learning potential.

FAQ

Is It Hard to Get Approved for Private Student Loans?

Approval depends on your credit score, income, and enrollment status. If you don’t meet the criteria, applying with a cosigner may improve your chances. Lenders also evaluate the type of program you’re enrolled in, so make sure your school and program meet their requirements. 

What Are Drawbacks to Private Student Loans?

Private loans often come with higher interest rates than federal loans and don’t offer benefits like income-driven repayment or forgiveness programs. They may also require a cosigner if you don’t have good credit. Carefully reviewing the terms and conditions can help you make an informed choice.

Can You be Denied a Private Student Loan?

Yes, you can be denied if you don’t meet the lender’s credit or income requirements or there’s an error on your application. Each lender has their own criteria for how to apply for a private student loan, so being denied by one doesn’t necessarily mean you’ll be denied by all. Exploring multiple options may increase your chances of finding a loan.

What Is the Standard Timeline for Applying for a Private Student Loan?

Most private loan applications are processed within a few days to a week, but the exact timeline varies by lender. It’s a good idea to apply at least a month before your tuition payment is due to allow time for unexpected delays. Planning ahead can help you avoid any last-minute stress with your school’s deadlines.

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