MoorWhat Is a Private Student Loan?
A private student loan is education financing from a bank, credit union or online lender — separate from federal loans. It can cover tuition, housing and other school costs up to your cost of attendance.
Federal vs Private
Always exhaust federal aid, grants and scholarships first — federal loans offer income-driven repayment and forgiveness options private loans don't. Use private loans to fill any remaining gap.
Fixed vs Variable Rates
Fixed rates stay the same for the life of the loan; variable rates can start lower but rise over time. Choose fixed for predictability, variable only if you plan to repay quickly.
Cosigners
Most students need a cosigner to qualify or to get the best rate. Many lenders offer cosigner release after a set number of on-time payments — check that option before you sign.
Requirements
- Enrollment at an eligible school
- A credit profile (yours or a cosigner's)
- Proof of income (you or your cosigner)
- U.S. citizenship or eligible residency (varies by lender)
How to Apply
Pre-qualify online to see estimated rates without affecting your credit, compare offers, add a cosigner if needed, then complete the application. Your school certifies the amount before funds disburse.
Repayment Options
- In-school deferred (pay nothing until after graduation)
- Interest-only while enrolled
- Fixed small payment while in school
- Full principal + interest immediately
Pros & Cons
| Pros | Cons |
|---|---|
| Covers gaps federal aid can't | No federal protections |
| Competitive rates with good credit | Often needs a cosigner |
| Flexible repayment plans | Variable rates can rise |
Final Thoughts
Borrow federal first, then compare private lenders on APR, cosigner release and repayment flexibility. Only borrow what you truly need. MoorLoans helps you compare lenders — we don't issue loans directly.