As mentioned on this financial aid site, private education loans are a popular option for paying for college. You may be wondering where to find lenders that offer private education loans.
At the time that this article was written, if you “Googled” the term “private education loans” a total of 7.2 million entries were displayed in the search results. That is not to say that there are 7.2 million companies that offer private education loans; however, 7.2 million entries were returned that had something to do with private education loans—that is overwhelming! The search for a private education loan lender can be completely confusing to the consumer. Many college financial aid offices compile what is referred to as a “Preferred Lender List” (PLL) or “recommended lender list.” At many institutions, aid officers will do the initial research for you and provide a list of reputable private loan lenders. As a consumer, you will still need to do your homework and compare available programs and decide on the best option for your family. However, using a Preferred Lender List (PLL) as a guide is a good starting point and certainly helps to streamline the process.
Although many colleges do have a PLL, not all do. Some colleges may refer you to a third-party loan comparison site. Although not as streamlined as a PLL, a third-party site will at least provide some guidance for your private education loan search.
Check with the financial aid office to see if they have a list of recommended private loan products. Remember to shop around and use our private education loan comparison points as a guide.
For more detailed information about covering the college bill, check out Financial Aid Sense: A Practical Guide. Our newly updated guide is full of college planning tools, worksheets, templates and lots of information about the college financing process. Take it along with you to stay organized and on track!