Private Educational Loans

Learn more about Private Educational Loans and Seattle University's Preferred Private Lender List

  1. Admissions & Aid
  2. Financial Aid & Scholarships
  3. Loans
  4. Private Educational Loans

Students who find they need more financial assistance than is offered in the financial aid offer prepared by the Student Financial Services Office may want to consider a private educational loan. These loans allow students to borrow up to their total cost of attendance less any financial aid they have been awarded. Students are strongly encouraged to use all available Federal Direct Loans first as they generally offer more favorable loan terms and repayment options.

Eligibility for private educational loans is credit-based; it is not based on need. Interest rates are generally variable, and interest accrues while the student is in school. Generally, repayment of the loan can be deferred until the student graduates, leaves school or drops below half-time enrollment.

Most private educational loans require the borrower to be a degree-seeking student who is registered at least half-time (6 credits as an undergraduate; 3 credits as a graduate student). However, some private education loans, known as "Continuing Education Loans," are available for enrollment that is not degree-seeking and/or is less than half-time. Some lenders also require students to be meeting Satisfactory Academic Progress. Contact lenders directly for academic requirements.

Policy Information

It is the policy of the Office of Student Financial Services at Seattle University to maintain a preferred list of lenders that offer alternative or private education loans to students and their families. These loans are offered by private lenders to assist with educational expenses that may not be covered by other federal, state, institutional, or private sources of financial aid. It is important that students carefully review their educational expenses before determining if they need to borrow from any source. Borrowers are encouraged to compare the services and products that are provided by lenders and choose the private lender that best suits their individual needs.

None of the lenders on Seattle University’s preferred lender list are affiliated with the university. The university will monitor each lender throughout the year. At least every three years, the university will issue a Request for Information (RFI) for its preferred lender list, ensuring that our students and families have the best options and up-to-date information available. Additionally, each academic year the university will confirm with lenders on the preferred lender list that their RFI response on file remains accurate.

Borrowers have the right to choose any lender, including any lender that is not on the university’s preferred lender list.

Seattle University has a published a Private Loan Code of Conduct and Policy on Preferred Lenders.

Seattle University established a Preferred Lender Arrangement Working Group, comprised of university leaders. The working group drafted a Request for Information (RFI) outlining its preferences and expectations of participating lenders and sent the RFI to 12 lending institutions, with 10 lenders responding to this request. The working group conducted a blind review of the lender responses, scoring each lender in the following categories:

  • Loan Program Coverage and Offerings
  • Interest Rates and Pricing Competitiveness
  • Fees and Borrower Cost Burden
  • Loan Limits and Cost-of-Attendance Coverage
  • Borrower Eligibility and Access
  • Prequalification Tools and Transparency
  • Repayment Flexibility and Borrower Protections
  • Customer Service, Technology and School Support
  • Ethics, Compliance and Conflict-of-Interest Standards

Based on this scoring rubric, the working group invited the top five highest-scoring lenders to participate as preferred lenders.

You may borrow from any lender you choose and are not required to use a lender on Seattle University’s preferred lender list. Seattle University will process loans from any lender in a timely manner regardless of whether or not the student has chosen to apply for federal loans or other financial aid.

 

Seattle University utilizes ELMSelect, a loan comparison tool offered by ELM Resources that allows students to compare private educational loans from our preferred lender list side-by-side. 

Guidance from Student Financial Services

Student Financial Services advises you to review each lender to understand what financing option provides you and/or your cosigner with the best rates and repayment options.

The lender will perform a “soft” credit check on your and/or your cosigner's credit history; this does not impact your credit history. Pre-qualification will provide you with preliminary interest rates and other important information about the lenders' financing options that may help you choose which lender is best for you. Please note that this is not a final approval or interest rate, but a “most likely” result. You will still need to complete an application with the lender you choose, and the final terms may differ from the prequalification terms. 

The following loan types or categories are available: Undergraduate, Graduate, Law, or Parent loans. You should select the category that is applicable for your academic level or borrower type (parent vs student); this is appropriate if you are an international student, undocumented student, or domestic student. 

If you are seeking a loan for a past due account or prior term, you may use ELMSelect, which will filter the lenders that offer that type of financing. Once approved, if you are borrowing to cover a past due balance, please contact Student Financial Services to let us know how much and for what term you are using the loan.

Each lender will provide an Application and Solicitation Disclosure (also known as “Truth in Lending”) on ELMSelect under the lenders “Details” tab.

The time from application to disbursement of funds can vary. Both lenders and Student Financial Services recommend that students apply about 2 months prior to their first tuition due date to ensure that funds are disbursed on time.

  • Student borrowers who need assistance determining how much they are eligible to borrow (cost of attendance minus estimated financial assistance) should contact the Student Financial Services Office.
  • Unless students specifically instruct otherwise, Student Financial Services certifies loans to be evenly disbursed over the quarters that students indicate on their loan applications. Students who know they will have uneven costs should tell Student Financial Services so their loans can be awarded and disbursed to their student accounts accordingly.
  • Regulations require student borrowers to complete a loan self-certification and submit it to their lender. This step adds to processing time and students should apply early.
  • It can take as long as four weeks following loan approval for students to receive their loan funds. Students who know they will need a loan for the entire year are encouraged to apply early and for the entire year rather than quarter-by-quarter.
  • Students must be registered for the term they are requesting for the Private Educational Loan. If you apply, and are approved for the loan before you register, please contact Student Financial Services once you have registered so that we can continue processing the loan.
  • Loan certification will be completed electronically on ELMSelect for certification by the Student Financial Services Office. If a lender doesn't participate through ELMSelect, the student's application will be completed as a paper document that is submitted by the lender for certification. For this reason, processing paper applications and certification generally takes longer.
  • Loan funds disbursed in excess of the tuition balance due will be processed as a Credit Balance Refund. Students who wish to return excess funds to reduce the amount they are borrowing should contact their lender directly to arrange a return of funds.