Private Loans

Related Pages

Changes to 2026-2027 Federal Student Loans
Need help with Private Loans?
Private Loan Considerations
Private Education Loan Applicant Self-Certification Form
Private Education Loans: Information for Students & Families (NASFAA)
Private Loan Checklist for Prospective Student and Parent Borrowers (NASFAA)
Direct Subsidized & Unsubsidized Loans
Direct PLUS Loans

Private student loans (also known as alternative education loans) are designed to bridge the gap between the total cost of your education and the funding available, which includes amounts you (or your family) can pay and any financial aid/loans available from various sources, including government programs. 

Given private loans are credit-based, the inclusion of a creditworthy cosigner is a significant strategic advantage. A cosigner provides additional security that substantially increases the probability of application approval and may also result in lower interest rates and more favorable loan terms, reducing the overall cost of borrowing over time.

With recent changes to federal graduate loans, borrowing through private lenders may be necessary if other resources and aid do not cover the full cost. To minimize borrowing, we recommend you think about funding in the following priority: 

  1. Scholarships/Grants
  2. Amounts you (or your family) can afford to pay
  3. Federal Loans (Direct and Plus Loans)
  4. Private Loans

In terms of borrowing, we recommend you exhaust federal borrowing annually before private loans. Federal loans often offer specific benefits, such as fixed interest rates, flexible repayment plans (such amounts being income-driven), and loan forgiveness opportunities that most private lenders do not provide.

Obtaining the Best Private Loan Terms 

Choosing the right private lender is a significant financial decision, and we want to ensure you have the tools to make the best choice for your future. By visiting the Private Loan Considerations page, you can review various borrower benefits to consider when shopping for a private loan. 

More Details About Private Loans

Private Loans are credit-based, meaning lenders review your credit history and income to determine approval and interest rates. Most students have limited credit history, so a creditworthy cosigner (a parent, guardian, or other trusted adult) is often required to get approved and secure a lower interest rate. The cosigner is equally responsible for the debt. 

Each lender will have their own process of establishing who will qualify and at what interest rate they will be granted. This process is called underwriting and includes factors like your FICO credit score, income to debt ratio, and other factors. While underwriting is universal for the industry, each lender will have their own proprietary process. 

Loan eligibility will also vary by lender in relation to course load levels and prior term balances. 

The student budget or Cost of Attendance represents the maximum aid you can be awarded through any combination of scholarships, fellowships, federal and private loans certified through Columbia University for the academic year.

To determine the maximum amount you can borrow in alternative loans, take the student budget and subtract any other financial aid awards, and the balance is the amount you can borrow in an alternative loan. The minimum loan amount is generally $1,000.

PLEASE NOTE: Before applying for private or alternative loans, you should first consider borrowing the full amount for which you are eligible under the Federal Direct Loan program.

Aggregate Limits

Aggregate limits are caps set by individual lenders that define the maximum amount you can borrow over your entire education.  

Private educational loans are disbursed in a variety of ways. Some lenders send funds directly to the student borrower, others send funds directly to Columbia University. 

The University has selected the Preferred Lenders based on several factors including cost and eligibility, benefits to borrowers, and overall customer service. Students have the right and ability to select the lender of their choice and are not required to use any of the lenders on the preferred lender list. Students are encouraged to shop around to find the lender offering the rates, terms, and service that are right for them. There are important changes to Federal Student Loans taking effect on July 1, 2026. Students should review this information to understand the implications and whether they will need to consider private loans.

ELM select is an external web-site that allows students to review the Preferred Lender List(s), compare products, and apply for private loans.

 

Before you and your family begin to explore your loan options, please read Columbia University's disclosure concerning private lenders.

Domestic Graduate Historical Lenders List

DO YOU NEED HELP WITH YOUR PRIVATE LOANS?

Students and families who need to complete paperwork to request private loans should consult with their school's financial aid office.

Consult the Pay by Mail page for more information should the private lender send the funds via paper check.

If you require Columbia University assistance with billing as it relates to your private loans, please contact the Student Service Center at [email protected] or by phone at 1-212-854-4400.