Private Loans

Private student loans are non-government loans from lenders such as banks, credit unions, and state agencies. Either the parent or the student can be the primary borrower, though with the latter, a co-signer is usually required. Before taking an alternative loan, we strongly encourage families to exhaust all federal student loan options first. You may find this summary of the differences between federal and private student loans helpful.

The amount a student can borrow through a private loan is limited to their cost of attendance minus all other financial aid received, including grants, scholarships, work-study, and federal loans. Compared with federal student loans, private education loans often offer higher borrowing limits, but interest rates are based on credit approval and may vary by lender. Deferment, cancellation, and repayment terms are also determined by the lender and can differ significantly from federal loan programs.

Union College has partnered with ELM Resources to provide a lender list. The lenders listed are recommended based upon their historical lending with our students or are based upon the quality of products and services they provide to students and families. We have carefully considered our selections in order to provide you with the best possible list of suggested lenders. However, if you wish to use another lender that is not on this list, you have the right to do so.

Lender List for Undergraduate Students
Lender List for Parents of Undergraduate Students

To help you compare the various private loans, consider the following questions:

Loan terms

• What is the interest rate? Is it fixed or variable? and how is it determined?
• How often is the interest rate adjusted?
• How much are origination fees and how are they charged?
• Will I be required to pay the interest while enrolled in school?
• When does the interest rate start to accrue and will it be capitalized?

Repayment

• When does repayment start? Is there a grace period before repayment begins?
• What is the monthly minimum payment?
• What is the maximum repayment period?
• Am I allowed to pay on the interest while I am in school?
• Are there any loan repayment benefits or reductions? If so, will they remain if a future payment is late?
• Can I defer repayment of the loan if I go to graduate school?
• Do you apply any penalties or charges for prepayments or early payoff?

Union College's code of conduct regarding private loans and student choice

As a responsible partner in processing and certifying private loans for Union students and parents, the Financial Aid Office staff abides by the following code of conduct.

• Union does not enter into any revenue-sharing arrangements with any lender.
• Union does not allow any officer or person involved with student loans to either solicit or accept gifts from a lender, guarantor, or servicer of student loans where the gift has more than a nominal value.
• Union does not allow its financial aid staff or anyone in a position of having influence over student loan decisions to consult with lenders for financial benefit.
• Union will not assign a borrower's loan to a particular lender or refuse to certify any loan based on the borrower's selection of a lender.
• Union will not request or accept any offer for student loan funds in exchange for either a specified number of loans made or a specific loan volume.
• Union will not accept any offer from any lender to provide call center staffing or financial aid office assistance.
• Members of Union's Financial Aid Office staff will not accept anything of value for serving on an advisory board, commission, or group established by a lender, guarantor, or group of lenders.