What should I compare between private lenders?

Compare the annual percentage rate rather than the interest rate alone, because APR includes fees. Check whether the rate is fixed or variable, the length of the repayment term, whether payments are required while you are enrolled, any origination or late fees, whether the lender reports to credit bureaus, and whether a co-signer can be released later.

Is the lowest monthly payment the best deal?

Not necessarily. A longer repayment term lowers the monthly payment but usually increases the total amount you repay over the life of the loan. Ask every lender for the total of payments, which is the full amount you will have paid when the loan is satisfied.

Does applying to several lenders hurt my credit?

Each formal application may create a credit inquiry. Inquiries for the same type of credit within a short shopping window are generally treated together by common scoring models, so comparing lenders within a few weeks limits the effect. Ask each lender when in the process it checks your credit.

Should I take a private loan before federal loans?

Generally no. Apply for grants and scholarships first, then file the FAFSA and accept the federal aid you are offered, and use a private education loan only for the gap that remains. Federal loans carry protections that private loans do not.

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How to Compare Private Student Loans

Here is how LoanAmerica® compares to typical private student lenders, what to look at when comparing any two offers, and when a private loan is the wrong answer.

LoanAmerica® compared to typical private lenders

The right column describes common practice across the private student lending market, not any specific lender. Terms vary by lender and change over time, so confirm current terms directly with any lender you are considering.

LoanAmerica® compared with typical private student lender practice
Feature	LoanAmerica®	Typical private lender
Maximum loan amount	Up to $100,000 per year, subject to underwriting	Varies widely by lender and program
Origination fees	None on qualified education loans	Some lenders charge origination or disbursement fees
Credit profiles considered	All credit profiles are considered	Many lenders decline applicants below a set score
Programs funded	Undergraduate, graduate, professional, and career and technical programs at accredited institutions	Often limited to four-year degree programs
Credit inquiry timing	Only when you submit a complete application	Varies; some check credit earlier in the process
Co-signer	May be required; a co-signer may improve your terms	Frequently required
Federal aid guidance	We direct you to grants, scholarships, and federal aid first	Not always addressed

Where a LoanAmerica® loan is not the right answer

We would rather tell you this up front than have you find out later.

A private education loan is not a substitute for federal aid. Federal loans generally offer income-driven repayment, deferment and forbearance, and eligibility for forgiveness programs. Ours do not.
Approval is never guaranteed. Every application goes through credit review and underwriting, and some applicants will not qualify.
The lowest advertised rate goes to the most qualified borrowers. Your rate may be higher, and it depends on your credit profile, program, loan amount, term, and whether you apply with a co-signer.
If another lender offers you better terms for the same amount, take the better terms. Compare the APR and the total amount you will repay, not the monthly payment alone.

Borrow free money first.

Before taking any private loan, apply for grants, scholarships, and awards you do not have to repay. Then complete the FAFSA to access federal aid, which may offer income-driven repayment, deferment, and forgiveness options that private loans do not. Use a private education loan only for the gap that remains, and borrow no more than you need.

What to Ask Any Lender

What should I compare between private lenders?: Compare the annual percentage rate rather than the interest rate alone, because APR includes fees. Check whether the rate is fixed or variable, the length of the repayment term, whether payments are required while you are enrolled, any origination or late fees, whether the lender reports to credit bureaus, and whether a co-signer can be released later.
Is the lowest monthly payment the best deal?: Not necessarily. A longer repayment term lowers the monthly payment but usually increases the total amount you repay over the life of the loan. Ask every lender for the total of payments, which is the full amount you will have paid when the loan is satisfied.
Does applying to several lenders hurt my credit?: Each formal application may create a credit inquiry. Inquiries for the same type of credit within a short shopping window are generally treated together by common scoring models, so comparing lenders within a few weeks limits the effect. Ask each lender when in the process it checks your credit.
Should I take a private loan before federal loans?: Generally no. Apply for grants and scholarships first, then file the FAFSA and accept the federal aid you are offered, and use a private education loan only for the gap that remains. Federal loans carry protections that private loans do not.

Check your federal aid first Start your funding request

This page is general educational information, not individualized financial advice. Advertised rates are the lowest rates currently available and are not guaranteed; not all applicants qualify and your actual APR may be higher. All loan applications are subject to credit review and underwriting approval. Loans will be originated by American Originations LLC, which does business as LoanAmerica®.