Private Loans

Private Education Loans

Private (alternative) student loans can help cover educational costs after federal aid, scholarships, grants, and personal resources have been considered. Youngstown State University recommends completing the FAFSA and utilizing all federal aid options before applying for a private loan.

Important: Private loans are credit-based, issued by private lenders such as banks or credit unions and are not backed by the federal government.

Who Can Apply

Private education loans are available to:

Undergraduate students
Graduate students
International students
Parent or sponsor (relative or friend)

Before You Apply

Review all available options carefully before choosing a private loan.

Complete the FAFSA to explore federal aid options
Compare federal and private loan options
Borrow only what you need to reduce long-term debt
Review interest rates, fees, and repayment terms
Understand the difference between APR and interest rate

Borrowing Limits

Private loan amounts may not exceed the cost of attendance minus all other financial aid received for the loan period.

Students are encouraged to borrow only what is necessary.

Understand Loan Costs

Knowing how loan costs work can help you make informed borrowing decisions.

Interest Rate:

The percentage charged on your loan balance. This may be fixed or variable.

APR (Annual Percentage Rate):

A broader measure of cost that includes the interest rate plus applicable fees.

Why It Matters: APR provides a more accurate way to compare loan options between lenders.

Example:

Lender A: 7% interest rate with a 4% origination fee
Lender B: 7.5% interest rate with no fees

Although Lender A has a lower interest rate, Lender B has a lower APR and overall cost.

Know Your Credit and Loan History

Private loans are credit-based, and lenders evaluate the credit history of all borrowers and cosigners.

Credit Reports: You may obtain a free annual credit report from all three major credit reporting agencies at Annual Credit Report.

Federal Loan History: You can review your federal student loan history by logging into your StudentAid.gov account and selecting My Aid → Download My Aid Data.

Lender Requirements

In addition to creditworthiness, lenders may have additional requirements.

Enrollment status
Academic progress
Prior year balances

Final loan approval and disbursement decisions are made by the lender. School certification does not guarantee funding.

Choosing a Lender

Students are encouraged to research and compare lenders to find the best option for their needs.

Youngstown State University does not endorse any lender. Students may borrow from any lender of their choice and application processing will not be delayed.

Smart Borrowing Checklist

Use this checklist to guide your decision-making process.

Compare lenders: Rates, fees, and terms vary
Know your credit history: Impacts approval and loan terms
Understand APR vs. interest rate: Reflects total cost
Choose the correct loan period: Ensures accurate processing
Complete the Self-Certification Form: Required by federal law
Borrow only what you need: Helps reduce long-term debt & future payments manageable.

Compare Private Loan Options

YSU partners with FASTChoice, an online tool that allows borrowers to compare lenders side-by-side and access educational resources.

YSU uses FASTChoice Lenders for the following reasons:

Multi-year approval options
No cosigner programs (with select lenders)
Competitive interest rates
In-school deferment options
Extended repayment terms
Parent/Sponsor loan options
Streamlined application process
Borrower incentives
Electronic funds transfer (EFT)
Interest rate reductions for automatic payments

Note: Not all lenders offer all features.

Choosing Your Loan Period

Selecting the correct loan period helps ensure accurate processing and timely disbursement. Only choose periods when you are enrolled. YSU cannot process a combined Summer/Fall/Spring loan.

Semester	Select Loan Period
Summer Only	May - August
Fall Only	August - December
Fall and Spring	August - May
Spring Only	January - May

Processing and Disbursement

Understanding the timeline can help you plan ahead.

Certification typically takes 1–2 weeks (longer during peak months)
Funds are disbursed no earlier than 10 days before the semester begins
Processing timelines may vary due to lender procedures, holidays, and delivery methods

Right to Cancel:

Borrowers and cosigners have a three-business-day right to cancel after receiving final loan disclosures. Funds cannot be disbursed until this period ends.

Self-Certification Requirement:

Federal law requires completion of the Private Education Loan Applicant Self-Certification Form before loan funds can be disbursed.

Canceling or Reducing Your Loan

Loan changes depend on the current processing stage and lender status.

If funds have already been disbursed, YSU will modify the loan upon receipt.

Complete the Loan Change Form to request a change to original loan certified amount.

Important Reminders

Disbursement timing is determined by the lender in coordination with the University schedule
Loan amounts may be reduced to comply with federal regulations
Total private loan funding cannot exceed cost of attendance
All financial aid is considered when determining eligibility
Some lenders require students to meet Youngstown State University’s Satisfactory Academic Progress (SAP) standards

Apply for a Private Loan

Click a link below to explore lender options and apply for a private student loan. The FASTChoice external site is maintained by ScholarNet, a lender-neutral platform designed to streamline the certification, processing, and disbursement of private student loans.

Student Borrower: Apply Now

Parent/Sponsor Borrower: Apply Now

Private Education Loan Disclosures

Federal regulations require lenders to provide disclosure notices at multiple stages of the loan process (application, approval, and final approval) to ensure borrowers understand the terms and costs before funds are disbursed.

Under the Truth In Lending Act and In accordance with regulation 34 CFR 668.14(b)(29)(ii), an institution must, upon the request of the applicant, discuss the availability of Federal, State, and institutional financial aid. Staff members in Youngstown State University’s Office of Financial Aid and Scholarships are happy to discuss with prospective students, current students, and their parents, all financial aid options available to them. Students and parents may qualify for loans or other assistance under Title IV of the Higher Education Act programs. The terms and conditions of Title IV HEA program loans may be more favorable than the provisions of private educational loans. The Higher Education Opportunity Act of 2008 (Pub. L. 110-35) (HEOA) added section 128(e)(3) to TILA to require that before a private educational lender may consummate a private education loan for a student in attendance at an institution of higher education, the private education lender must obtain the completed and signed Self Certification Form from the applicant. The Federal Reserve Board’s Final Regulations published on August 14, 2009 incorporate this new requirement at 12 CFR 226.48(e). Federal law requires private lenders to collect borrowers signed Private Education Loan Applicant Self‑Certification Form.

Consumer Resources

Consumer Financial Protection Bureau (CFPB): Offers neutral, non‑lender‑affiliated information and a complaint system for private loan concerns
Federal Trade Commission (FTC): Provides fraud prevention and consumer protection guidance
U.S. Department of Education (Higher Education): Comprehensive guidance about colleges, universities, and other higher education programs

Access My Aid

General Financial Aid Information

Types of Financial Aid

Tools to Search and Estimate

Maintaining Aid