| All of the related expenses for obtaining a higher | | | | amount before funds are disbursed. The amount |
| education can catch a family off guard if financial | | | | borrowed cannot exceed the total cost of attendance, |
| preparations were not made in advance. Some | | | | minus other financial aid that the student receives. |
| students apply themselves early and make grades | | | | Uncertified private student loans do not require |
| throughout high school that makes them eligible for a | | | | certification from the institution regarding the amount |
| full scholarship, often to the college or university of their | | | | borrowed. Schools generally will not certify loans that |
| choice. | | | | are in excess of the total cost of attendance. |
| For students who do not have the benefit of a full | | | | Additionally, uncertified college loans are disbursed to |
| scholarship, their parents will have to find alternative | | | | the student or person borrowing the funds. As with |
| methods for paying for their college expenses over | | | | any loan, it is best to borrow only the needed amount |
| the next four years. Uncertified private student loans | | | | because all funds must be repaid after graduation. |
| are one way that this is accomplished. | | | | Although uncertified loans have fewer restrictions, a |
| Certified versus Uncertified Private Student Loans | | | | student may need a cosigner before the loan is |
| Before applying for any type of college loan, it is best | | | | approved. The borrower's credit score and |
| to have a clear understanding of the type of loan you | | | | creditworthiness determines whether or not this type |
| or your child will receive. In general, private student | | | | of loan is granted. |
| loans are necessary when the standard financial aid | | | | Advantages of Uncertified Private Student Loans |
| such as Pell grants and Stafford loans are not enough | | | | There are a few advantages to getting an uncertified |
| to cover education related expenses. These | | | | private student loan to help pay for college expenses. |
| expenses may include tuition, books, computers, and | | | | The procedures for applying are simplified. The terms |
| dorm fees. | | | | of the loan is relaxed with competitive interest rates. |
| Both certified and uncertified loans can be used for | | | | The borrowing limits are higher for private student |
| these expenses. However, the primary difference | | | | loans than they are for federally guaranteed student |
| between the two is that the certified loan requires that | | | | loans. As with federal loans, private loans may also be |
| the institution where the student will attend verify the | | | | deferred while the student is enrolled in school. |