Private loans
Private loans come from banks, credit unions, or other lenders, not the federal government, and should only be considered after you've explored all other financial aid options. Compare lenders and know the terms before you borrow.
When federal aid isn't enough
Private student loans are offered through banks or lenders (not the government!) and typically come with higher interest rates and fewer repayment protections than federal loans. Always maximize your federal direct loan options first before considering private options.
What to know before borrowing privately
It's important to use all available financial aid options first (grants, scholarships, and federal loans). If you must take out a private loan, borrow only want you need. Reducing costs now means less to repay later.
Comparing lenders
Research the following aspects of each loan carefully before committing:
Interest rate: Know whether it’s fixed or variable, this will affect your monthly payment.
Loan fees: Look out for origination, service, or late fees.
Eligibility: Most lenders require a good credit score and a cosigner (especially for international students).
Loan limits: You can only borrow up to the cost of attendance minus other aid.
Applying for a private loan
You’ll apply directly through your lender, not through NAU. Here are two helpful tools to compare your options:
ELM Select
ELM Select shows real lender options and historical data from students just like you. Compare rates, terms, and repayment features. Bonus: ELM helps streamline your application and disbursement process.
Sparrow
Sparrow helps you search and compare personalized loan rates in just a few minutes. Its visual tools make understanding private loans easier.
Please note: NAU does not partner with or endorse any private lender or loan platform. Always do your research and choose what works best for your financial situation.
More details to keep in mind
Loan certification
Private loans must align with NAU’s academic year and term structure. If your loan overlaps years or terms, your request will be placed on hold.
NAU will only certify private loans for students who meet the lender’s conditions, including enrollment and Satisfactory Academic Progress.
Loan disbursement
Loans certified for both fall and spring are split across the semesters. One-term loans disburse all at once.
By law, lenders must give you three business days to cancel your loan after issuing the Loan Consummation Disclosure Statement.
Private loan funds are sent within 10 business days after your right-to-cancel window ends. (Lenders and schools are prohibited by federal regulations from disbursing funds until the cancellation period has passed.)
Single loan terms
If applying for a loan for just one term, it will be certified for the cost of attendance minus any other financial aid for that term.
Private loan disclosure
Private loans are designed to help fill the gap between other aid and your total cost of attendance. They’re only available to enrolled students and require careful consideration.
NAU does not endorse or recommend any private lenders. Compare rates, fees, and repayment terms carefully. A co-signer can sometimes help you qualify or get a better rate.
Federal loans should always be your first option. They usually offer lower rates, more flexibility, and better protections. Learn more at Federal Student Aid.
The amount you can borrow is based on your cost of attendance, other financial aid, your lender’s policies, and your (or your co-signer’s) credit profile. Your total aid, including private loans, cannot exceed NAU’s published cost of attendance.