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Private Loans

The terms and conditions of Federal Student Loans may be more favorable than the provisions of Private Educational (alternative) loans. Students are encouraged to exhaust all Federal grants, loans, and any scholarship opportunities before considering a Private Educational (alternative) loan.

Private Educational Loans are private lender loans and are not part of the William D. Ford Direct Loan Program. The following are stipulations that students should consider when applying for alternative loans:

  • Each lender/loan may have different eligibility requirements and terms (repayment, interest rates, etc.)
  • Eligibility for private educational loans often depends on a borrower’s credit score and application, and/or credit-worthiness of the student’s co-signer.
  • Private educational loans required a school certification. The Certification request is sent to NMSU via ELM only after the credit check has been approved.
  • NMSU is required by law to ensure the sum of private educational loans and other financial aid does not exceed your cost of attendance.  If this total exceeds your cost of attendance, your loan may not be certified for the full requested amount, and /or a portion of your loan funds may be returned to your lender.
  • Many lenders of private loans will provide the Self-Certification Form to the student borrower. Should you choose a paper Self-Certification Form to begin the application process, please click here. Your Financial Aid Advisor can help with any questions you might have while completing the form.

Questions to ask before selecting a lender/Private Loan

Lenders Policies

  • Does the lender offer Electronic Funds Transfer (EFT)?
  • Can I apply for a private loan to pay past-due charges?
  • Can I apply for a private loan after the term has ended? How long after?

Interest rates

  • What is the interest rate? Is the interest rate fixed or variable?
  • Would a co-signer lower the interest rate?
  • Is there a co-singer release option?
  • How often is interest added (capitalized) to the principal amount?


  • Can payment be deferred while in school?
  • Are there any prepayment fees?

Comparing Federal and Private Loans

New Mexico State University, in conjunction with Student Lending Analytics, has provided a list of private loan options for undergraduate and graduates to serve students who need a focused and neutral resource for help in finding a private student loan.  The lenders provided via the link below appeared most frequently during an analysis of private loan lenders used most often at NMSU over the past 3 consecutive years.

Private Loan Lenders


New Mexico State University has received no consideration from any lenders for placement on this list.

Placement on this list DOES NOT in any way constitute an endorsement from NMSU, nor should it be construed as a preferred lender list. You are free to borrow from any lender of your choice. While NMSU has made every effort to confirm each of the lender loan terms described above through the website it cannot guarantee its accuracy. Furthermore, not all the lenders lend to all students at all schools. The borrower should confirm any and all loan terms with the lender PRIOR to accepting the loan. Each lender’s position on the list is randomly determined. NMSU will update this page as necessary. The information provided is subject to change without notice.