Understanding: What is a Private Loan?
Private Education Loans are credit-based loans provided by private educational lenders, and are not issued, insured, or guaranteed by the federal government. A private student loan can assist in closing the gap between need-based financial aid and total education costs.
Students are encouraged to complete a Free Application for Federal Student Aid (FAFSA) and exhaust all federal and state financial aid options before considering a private loan. However, it is up to a student to determine the best means for themselves to pay for their education.
Private loan eligibility is determined by lender credit review, individual lender terms and conditions and is typically issued in the student’s name; most often requiring a credit worthy cosigner. Borrowers should compare interest rates, repayment options, forbearance, and deferment options as these features vary among lenders.
Federal vs. Private Loans Preferred Lender List Private Loan FAQs
Applying: A Guide for Borrowers
We recommend that you apply for a private loan no more than three months prior to the start of the term. Private loans are credit based and conditionally approved for an average of 90 to 120 days (about 4 months).
Visit the Office of the Registrar: Academic Calendar for term specific start dates.
Please Note: Credit expirations vary by lender; therefore, all questions regarding lender credit expiration must be directed to the respective lender.
Fall/Spring Semesters
During the application process you will be required to provide the loan term dates; this refers to the term(s) of enrollment for which the private loan is applied; this includes either a full academic year or single portion of the academic year (term/semester).
| Term | Start Date | End Date |
|---|---|---|
| Fall and Spring | August | May |
| Fall only | August | December |
| Spring only | January | May |
Refer to Office of the Registrar: Academic Calendar for additional academic year/term information.
We encourage students who need to borrow a private loan for both the fall and spring terms to submit their loan application for the full year instead of submitting a separate application for each term; full year loan amounts will be split evenly between the fall and spring terms.
Summer
Summer Financial Aid: Student’s must submit The JMU Summer School Financial Aid Application; this application is required even if a student is only using a private loan for the summer term. Failure to submit the application may cause significant delays in the processing of your loan.
Summer private loans have separate loan term dates and require a separate loan application from fall and spring private loans.
Combining summer with any other term may result in significant delays in loan processing.
| Term | Start Date | End Date |
|---|---|---|
| Summer | May | August |
Researching and comparing lenders is crucial and will ensure the lender and loan product selected best suits a borrower’s financial needs.
Borrowers have the right to borrow with any lender offering a private education loan regardless of whether they are listed on JMU’s Preferred Lender List. JMU does not discriminate against lenders and will certify loans from any lender provided the student meets the lender’s eligibility requirements.
Explore the JMU Preferred Lender List to compare lender loan products.
The lenders and loan products presented on the JMU Preferred Lender List were selected for the excellent terms and benefits they provide to borrowers. We use strict criteria based on the interests of our students; this information is reviewed annually to ensure that the benefits the lenders offer continue to adhere to our criteria.
The Private Education Loan Applicant Self-Certification Form is provided during the application process to be completed by the applicant and submitted back to the lender. A private loan will not be disbursed until this step is complete.
If your lender has requested you complete a Self-Certification form and one has not been provided, you can access and complete the Private Education Loan Applicant Self-Certification form provided.
Do not submit the Private Loan Self Certification Form to JMU; the form must be submitted directly to your lender.
Processing: Certifications & Disbursements
A private loan certification request is sent to JMU after approval and initial disclosures have been obtained by the lender. The certification is processed after reviewing the student account to verify that the student is meeting all other loan requirements. Requirements may include enrollment confirmation, cost of attendance, and/or academic standing just to name a few.
Private loan certification requests are typically processed within 2 to 6 weeks, with the longer delay taking place during our peak volume times at the start of fall, summer, and spring terms. We strive to lessen this period as much as possible.
The Higher Education Opportunity Act (HEOA) regulations require lenders to provide borrowers with a minimum three-business day right-to-cancel period and an additional three business days for the borrower to receive the final disclosure. Once the lender has released the private loan funds the disbursement process begins, this can take our office an additional 2 to 4 business days. Lenders will not disburse your funds until they have received all required documents, disclosures, and borrower signatures.
Private loan disbursements will not be requested earlier than 10 days prior to your term start date.
If you are expecting a refund to cover other educational expenses several factors can delay the receipt of this money. Always be prepared to cover your startup expenses, such as books and supplies, for the first few weeks of each semester.
Mon - Fri 8 a.m. - 5 p.m.
Summer Hours of Operation:
Mon - Thur 8 a.m. - 5 p.m.
Fri 8 a.m. - 12 p.m.
