What is a private student loan?

Private student loans help students fill the funding gaps that federal aid can leave behind. Private loans should only be used when all federal aid and low-cost sources of funding have been exhausted. Student loans are held in the name of the student and, unlike Stafford loans, often require a co-signer. They are issued by private lenders and are not guaranteed or subsidized by the government. The interest rate is based on the student’s credit and/or the credit of any co-signers they have on the loan. MITFCU is pleased to offer a private student loan product.