Things You'll Need
List of other income and savings
Check your credit score with the major credit bureaus. Private student loans are issued through private lenders, and they are granted based on your credit history and score and your income. According to FinAid, if your credit score is less than 650, private lenders are unlikely to approve your loan application. In addition, a higher score will lower the interest rate charged on your loan.
Find a cosigner for your loan. A cosigner is guaranteeing to the financial institution that the loan will be repaid. If you do not repay the loan, the cosigner will be responsible for making the payments. According to Bankrate.com, a cosigner should have an established credit history with a credit score of at least 680. Consider asking your parents or another trusted family member of friend to cosign your loan.
If you have a low credit score, no credit history or low income, a cosigner with a good credit and job history will help you get approved for your loan. A cosigner may also allow you to receive a lower interest rate, even if you can get approved for the loan on your own.
Determine the amount
of money you need from the loan. Determine your education and living expenses for the upcoming year; subtract the money you will receive from federal student loans, grants, scholarships, savings and employment income. Since private student loans generally have a higher interest rate than federal loans, students should exhaust sources of financing before turning to private loans.
Compare and select a private loans. Consider both big bank lenders as well as local financial institutions. Compare the maximum loan limits, interest rates, fees and repayment period. Find out if there are other conditions or requirements. For example, some loans are only for graduate programs. Many loans exclude the purchase of a computer with loan funds, and most loans require at least half-time enrollment in an accredited school. Choose the loan with the lowest interest rates and fees that fits your needs and has a repayment plan that works for you.
Complete the loan application with your chosen lender. Your co-signer will also need to complete and sign a section of the application. Submit the application to the lender.
Sign the loan re-payment agreement. Your co-signer will also need to sign. Once the paperwork is processed, your lender will send you the funds for your loan.