Private funding should (must -if pending legislation passes) be considered as a last resort only after applying for Federal Loans. The after tax interest rates of private loans are sometimes very attractive. However, Federal Loans, have cancellation provisions, unemployment & economic deferment provisions, as well as consolidation options which are not available to the private loan borrower. There are also private loans for past due account balances for students who must clear their balances before returning to school. The student should first make sure to have applied for federal aid using the FAFSA and address the private loan for the past due balance as indicated in the next paragraph.
Although a FAFSA is required for processing a private/alternative loan there are some circumstances in which an individual need not complete a FAFSA - the student is applying for loan for a prior balance only, the student is an International student or otherwise not eligible based on citizenship. In situations like these the student should submit a document with their private loan application requesting an exception to the FAFSA requirement based on the criteria outlined in this paragraph.
No combination of funding from private, federal, state or institutional sources can exceed the Cost of Attendance.
Congress has recently mandated that private loan lenders require borrowers to complete a Private Education Loan Applicant Self-Certification form when requesting any private educational loans. Do not submit your self-certification form to Oakwood University and we cannot complete this form for you. It must be completed by the borrower and sent to your prospective lender.
There are many Private Education loan programs available through a variety of private lending institutions and banks. Private loans are designed to be similar to government-sponsored educational loans, often allowing in-school deferment of payments. However, private lenders will perform credit and eligibility checks before granting the loans. Often, a cosigner is required. Interest rates are higher than the government-sponsored educational loans, but still may be a better option than other kinds of loans available to the student.
You will need to contact the lenders directly in order to obtain any additional information and to apply for a private education loan. We will process a loan with any private/alternative lender. Although some private lenders are much better than others in processing loans when interacting with our office, we cannot provide you with a listing or provide any recommendation. We suggest you begin with a lender you know and explore lenders on your own.
Once you have completed an application with your individual lender a loan certification will be sent to the Oakwood University Student Financial Aid Office. In order for Student Financial Aid to certify your loan application you must complete a Oakwood University Certification Form, a FAFSA for the appropriate year and return it to the Oakwood University Student Financial Aid Office. When loan funds are received, they will be placed on your student account.