1. How do I know if I am eligible for an Academic Private Loan?
To be eligible, you must be:
- A graduate student enrolled at least half-time in a degree-granting program.
- Making satisfactory academic progress
- The age of majority in your state of permanent residency (18 in most states)
- A U.S. citizen or permanent resident (international students may apply with an eligible co-borrower who is a U.S. citizen or permanent resident)
- Able to meet minimum credit criteria
2. How much am I allowed to borrow?
The minimum and maximum amount you may borrow varies by academic program. To view what you are eligible for go to the PhoenixLaw website and click on the Cost of Attendance (PDF).
3. What are the interest rates and are there any fees?
Interest rates and any fees associated with loan programs will vary by academic program. Interest rates are variable and will fluctuate based on changes to the Prime or LIBOR index. Both the loan interest rate and fees, if any, will be presented to you during the application process and again with your Truth in Lending disclosure.
4. What is the benefit of seeking a co-borrower?
Applying with a co-borrower could be helpful in reducing your interest rate and saving you money over the life of your loan. If you lack sufficient credit history or currently have limited earnings, utilizing a co-borrower is always a good idea. A co-borrower with a good credit history may positively affect your interest rate and any fees you may pay. A co-borrower can be anyone you know, although typically parents, spouse, or family members are those willing to co-sign a loan.
5. What borrower benefits are available?
Borrower benefits will vary by loan. They may include:
- Interest rate reductions to qualified borrowers who make on-time payments
- Interest rate reductions for utilizing auto-debit payments
- Co-borrower release to qualified borrowers who make on-time payments
6. Why is a credit check necessary?
A credit check is used for most consumer loans to determine your ability (and your co-borrower's ability, if applicable) to repay your debt obligation.
7. What items on my credit history would prevent me from getting a loan?
Below are some items in your credit history that may prevent you from qualifying for a private loan:
- Student loan default
- Delinquent payments on consumer loan account(s)
- Significant judgments, charge-offs, or unpaid tax liens unless payment arrangements have been made
- A bankruptcy
- A low credit score or an insufficient credit history
- Inability to pass a debt-to-income test
Student borrowers with adverse credit history may still be eligible for a private loan, but they must apply with a creditworthy co-borrower.
8. If I am approved, when will I get my money?
You should receive your funds the 2nd week of school, here is a brief synopsis of what happens:
- PSL will receive the certification request; review the information and contact you if there are any questions, once that is done the Financial Aid representative will certify the loan.
- An award letter will be given to the student indicating the funds awarded, you have the decision to accept or decline the amounts.
- The loan will be disbursed on the dates indicated on your promissory note and award letter.
- Once disbursed, monies will be applied to the student account and any remaining funds will be given to the student in a stipend check.
9. When will I start repaying the loan?
Repayment will start 180 days after your graduation date or school separation date. Repayment terms will vary by lender, your repayment terms will be presented to you during the application process and with your Truth in Lending disclosure.
10. Should I report an outside scholarship to the financial aid office?
Yes. If you are receiving any kind of financial aid from private or government sources, you must report the scholarship to the financial aid office. PSL will adjust your financial aid package to compensate the additional award; nevertheless, the outside scholarship will have beneficial effects.
11. What information do I need to apply?
The following information will be needed when you apply. When you apply with a cosigner, you will need the same information for your cosigner.
- Full Name
- Social Security Number
- Date of Birth
- Permanent Address and Number of Years at that Address
- Monthly Rent or House Payment
- Home Phone Number
- Occupation / Position
- Employer and How Long Employed
- Business Phone
- Gross Annual Income
- Proof of enrollment: tuition invoice, letter of acceptance, etc.
- Reference: Nearest Relative or Friend Not Living with You, Must be Different than Reference for Cosigner (Name, Address, Home / Business Phone Number
12. Who is a qualified co-signer?
- Satisfactory credit history
- Resident at current address, or most recent previous address, for at least one year
- An employment history of at least two years
- Proof of current income
- If self employed, been in business for at least two years
- A U.S. citizen or permanent resident who has resided in the U.S. for the previous two years
13. Where can I find more scholarship money?
Below are free internet scholarship search engines:
