Paying for college isn’t one-size-fits-all. Most students and families use a mix of funding sources, including scholarships, grants, savings, and federal student aid. But sometimes, there’s still a remaining balance that needs to be covered. That’s where private student loans (PSLs) come in.

Private student loans are about building a complete and flexible funding strategy that works for you. Whether you’re a student borrower or a parent helping to support college costs, PSLs can provide the extra support you need, on your terms.

Why Consider a Private Student Loan?

Banks, credit unions, fintechs, and private lenders all offer private student loans, and they’re designed to help cover college-related expenses that other aid sources might not fully handle.

They’re a helpful solution when:

• Your federal student loans don’t cover the full cost of attendance
• You want to pay for housing, books, or supplies in addition to tuition
• You’re facing a tight deadline and need funds quickly
• Parents want a flexible alternative to Parent PLUS Loans

In short, PSLs can be used to conveniently fill college funding gaps.

How Private Student Loans Work

Private student loans are credit-based, which means your credit score (or a co-signer’s) will impact your eligibility and interest rate. Many undergraduate students apply with a parent or guardian co-applicant to help qualify for better rates and terms.

Funds can be used for:

• Tuition and fees
• Room and board
• Textbooks, laptops, transportation, and more

Most lenders offer flexible repayment plans and deferment options, so you can find one that fits your budget and timeline.

Parents: Looking for More Control Over Education Funding?

Many parents support their student’s education by either co-signing or borrowing directly. Private student loans offer more customization and flexibility than federal Parent PLUS Loans, such as:

• Competitive interest rates — often lower than federal options
• The choice to co-sign instead of borrowing solo
• More flexible repayment options and timelines

Credit unions, in particular, are known for supporting families with personalized service and member-first loan structures.

Why Choose a Credit Union for a Private Student Loan?

Credit unions are not-for-profit financial institutions — meaning they exist to serve their members, not shareholders. As a result, they often offer:

• Lower interest rates
• Minimal fees
• Flexible repayment terms
• Helpful support, especially for first-time borrowers

Even if you’re not currently a member, many credit unions have broad eligibility and simple application processes that make it easy to get started.

What to Consider Before Applying

Taking out a private loan is a smart decision when done with intention. Here’s what to think about:

• Interest Rate Type: Fixed (same for life of loan) or variable (may change with market)?
• Repayment Options: Defer until after graduation? Start now? Pay interest-only during school?
• Loan Terms: What’s the repayment timeline, and does it match your goals?
• Who Should Borrow: Student, parent, or both? Consider who can qualify for better rates.
• Co-signer Release Options: Some lenders allow the student to take over the loan later.

And remember: comparing lenders before you borrow helps you find the best match for your financial situation.

Private Student Loans as Part of a Confident Plan

Every student and every family has a different path — and that’s okay. Private student loans can be a smart, flexible way to ensure your college journey stays on track. With the right lender, you can borrow with confidence, knowing your loan supports your education goals without unnecessary stress.