Private (Alternative) Education Loans

A variety of private lenders offer private or alternative education loans, which may be borrowed by students or sponsors to help finance a student's education.  Gonzaga University encourages students to:

Students may choose to borrow from federal loans only, private loans only, or a combination of both, depending on their individual circumstances.

Private (Alternative) Loan Basics

  • Private educational loans are based on creditworthiness.
  • Most lenders require a credit-worthy cosigner for undergraduate borrowers.
  • Some lenders may offer cosigner release options after certain repayment and credit requirements are met; terms vary by lender and are not guaranteed.

Using ELMSelect to Find Lenders

Gonzaga has compiled a historical list of private education loan lenders, which is available through ELMSelect, a third-party loan comparison website.

  • Students may select any lender without penalty, whether or not the lender appears on the ELMSelect historical list.
  • If you are interested in borrowing from a lender not listed on ELMSelect, contact the lender directly to confirm that they offer student loans.

Non-Certified Loans

Some lenders may offer private educational loans that do not require school certification.

  • Borrowing these loans may have a serious negative impact on your existing financial aid package.
  • Always contact Gonzaga's Financial Aid Office before borrowing these loans.

Gonzaga's Role in Private (Alternative) Loans

  • Gonzaga will process loans from any private lender chosen by the student.
  • The University does not recommend or endorse any specific lender.
  • Gonzaga adheres to a student loan code of conduct.
  • Please contact Gonzaga if you have any questions about federal or private loan processes or your borrowing options.

Federal vs. Private Student Loans

Federal Loans Private Loans
Repayment Payments not required while you are enrolled at least halftime. Payments may be required while you are still in school.
Interest Rates Fixed interest rates, often lower than private loans or credit cards. Interest rates may be variable, are often high (sometimes 18% or more).
Subsidization Some federal loans are subsidized, where the government pays interest while you are enrolled at least halftime. Private loans are not subsidized.
Credit Credit check not required. Credit check required.
Cosigner Cosigner not required. Cosigner may be required.
Tax Deduction Interest may be tax-deductible. Interest may not be tax-deductible.
Payment Options Forbearance and deferment options available for eligible borrowers. Forbearance and deferment options may not be available.
Repayment Plans Multiple repayment plans, including options to tie your monthly payment to your income. Repayment options vary.
Penalty Fees No prepayment penalty fee. Check if your private loan has prepayment penalty fees.
Loan Forgiveness Loan forgiveness often available for public service workers. Loan forgiveness for private loans is rare.
Assistance Free help at studentaid.gov and at 1-800-4-FED-AID Assistance may be available from the Consumer Financial Protection Bureau’s private student loan ombudsman at consumerfinance.gov.