Private Loan Comparison Checklist
Private education loans can fill funding gaps—but they are not all the same. Use this checklist to compare.
Rate Shopping Tips
Applying to mulltiple lenders within 30 days is considered 1 inquiry. Some lenders offer prequalification with a soft credit check.
Step 1 — Understand the Interest Rate
- Fixed Rate: Stays the same
- Variable Rate: Subject to change over time (ask Lender how and when it adjusts)
- Ask: What rate do I qualify for? Not just the advertised lowest rate.
- Ask: What interest rate reductions are available?
Step 2 — Look at the Annual Percentage Rate (APR)
APR represents the yearly cost of a loan, including both the interest rate and any additional fees. It’s the clearest picture of total cost and the best way to compare different loan products.
What does capitalize mean?
The addition of unpaid interest to a loan's principal balance (to be repaid once in repayment period).
Step 3 — Review Repayment Options
- Immediate repayment
- Interest-only
- Deferred (interest will capitalize)
- Flat/Fixed payment (often $25/mo)
- Ask: What Repayment Options are available to me?
Step 4 — Understand Cosigner Requirements
Ask:
- Is a co-signer required?
- Will a cosigner improve my rate?
- Is there cosigner release? If so, what are the requirements?
No Co-Signer?
The three main reasons a student with no co-signer may be denied are: low credit score, no-minimal credit history, and delinquent accounts on credit reports.
Step 5 — Check for Fees
Look for:
- Origination fees
- Late fees
- Returned payment fees
Step 6 — Evaluate Borrower Protections
Compare:
- Deferment/Forbearance length and limits
- Temporary hardship option
- Death and disability discharge
Step 7 — Use ElmSelect to Explore Your Options
ElmSelect helps you:
- Begin doing research!
- View lenders historically used by Simmons students
- Compare rate ranges and terms
- Access lender disclosures
Important: The university does not recommend or endorse any lender. Elmselect is a space where you can begin to do research. You are not required to use one of these lenders. Use the information to make the best choice for your financial situation.