Private Student Loans (2022)

Private Student Loans (1)

Student Loan Features and Rates

Features:

  • Loans available up to the school-certified cost of attendance1 – including tuition, fees, books, computer, meals and housing
  • 0.25% interest rate reduction when you sign up for automatic payments2
  • Apply for one semester or the entire academic year
  • Variety of payment options while you're in school to help reduce your overall loan costs
  • A co-signer release that may be requested after 24 consecutive, on-time principal and interest payments3
  • Rates & Terms

Rates:

Variable APR as low as4
4.58%
with autopay


Fixed APR as low as5
4.63%
with autopay

Terms:

5- or 10-year6

Sign in to your student loan account now.

Manage Your Loan Sign in to your student loan account.

Contact a loan specialist at the Student Loan Center today. 1-877-304-9302, M-F, 8 am - 8 pm, ET or navyfederal@lendkey.com.

(Video) Best Private Student Loans of 2022

Private Student Loans (2)

Eligibility

Applicants must meet credit and underwriting criteria and be a:

  • member of Navy Federal Credit Union, or become one in the application process
  • current student or graduate of an eligible school (excluding parent refinance loans)
  • U.S. citizen or permanent resident
  • legal adult in the state in which they reside (age 18 in most states)

How a Co-signer Can Help

  • increase the chance of loan approval
  • help lower the interest rate on the loan

In fact, 9 out of 10 student borrowers have a co-signer, and at Navy Federal, borrowers can request to release co-signers after 24 consecutive, on-time payments.3

Learn how adding a co-signer can help you get a loan

Private Student Loans (3)

Private Student Loans (4)

(Video) How Do Private Student Loans Work

Career Assistance Program Now Available With Any Student Loan

If you have a Navy Federal student loan, you’re automatically eligible to use an online job search training system and resources, which includes:

  • job search and interviewing tips
  • suggestions for how to find jobs not yet open to the public
  • a job-tracking dashboard
  • online tools and exercises, including a resume builder

Easily Apply Online in Minutes

  • Apply online and get notified of the preliminary application decision.
  • Submit the requested documents—we’ll email you a list.
  • Receive the final decision and loan agreement, which you can sign electronically.

Check out the full step-by-step process

Private Student Loans (5)

Student Loans Resources

  • Private Student Loans (6)

    Private student loans can help bridge the gap for college costs. Determine your eligibility, better understand the process, and learn what you’ll need to apply.

    Learn Moreabout How to Apply for Private Student Loans

  • Private Student Loans (7)

    With no origination costs or application fees, refinancing your student loan may help you save more—and allow you to pay off your loan sooner.

    Learn Moreabout How to Refinance Student Loans in 4 Steps

  • Private Student Loans (8)

    Everything co-signers need to know about being added to, and eventually released from, a relative or friend's private student loan.

    Learn Moreabout How to Add or Release a Co-signer From a Loan

View MoreStudent Loans Resources

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What costs are covered by Navy Federal's private student loans?

Our loans can be used for:

  • tuition
  • dorm room costs or off-campus housing (e.g., rent for an apartment)
  • laptops, textbooks and supplies
  • food costs (e.g., meal plans or groceries)
  • transportation
  • and other education-related expenses certified by your school

What information do I need to apply?

Applicants will need to provide their:

  • Social Security number
  • permanent address, phone number and email addresses
  • basic academic information (such as graduation date, academic year, cumulative college GPA if not a freshman, etc.)

Is the interest tax deductible?

Yes, interest on student loans is tax deductible with some restrictions. An in-depth explanation is available on the IRS website.

Which dates are important for me to remember when I'm applying for a student loan?

With Navy Federal, there's only one date you need to remember: June 1 is when applications open for the upcoming summer, fall, winter and spring semesters. After June 1, you can apply for loans for the entire upcoming academic year.

Still have questions? Visit our Student Loans FAQs.

(Video) 5 Best (and worst) Private Student Loans (2019-2020)

1

Navy Federal private student loans are subject to credit qualification, school certification of loan amount, and student's enrollment at a Navy Federal-participating school. Navy Federal reserves the right to approve a lower amount than the school-certified amount or withhold funding if the school does not certify private student loans.

2

The discount requires continued enrollment of automatic payments. The borrower authorizes automatic payments from a personal account via Automated Clearing House (ACH). If automatic payments are canceled at any time after enrollment, the rate reduction will not apply until the automated payments are reinstated. Automatic payments may be suspended during periods of forbearance and deferment. For variable-rate loans, the APR, including the 0.25% rate reduction, may not fall below the floor rate.

3

Subject to Navy Federal Credit Union approval. A request to release a co-signer requires that the borrower has made consecutive timely payments during the repayment period with no periods of forbearance or deferment. The "repayment period" begins after any In-School and Grace Periods. "Timely payment" means each full principal and interest payment is made no later than the 15th day after the scheduled due date of the payment. "Consecutive payment" means the regularly scheduled monthly payment must be made for 24 months straight for private student loans, and 12 months straight for refinance loans, without any interruption immediately prior to the release request. To qualify for a co-signer release, the borrower must submit a request, meet the consecutive, timely payment requirements, provide proof of income and pass a credit check.

4

Variable-Rate Loans: APR = Annual Percentage Rate. Rates and terms are based on creditworthiness and subject to change. The "as low as" rate displayed above is available for the 5-year term and assumes a 0.25% rate reduction upon borrower enrolling in automatic payments. For more information about the automatic payment borrower benefit, see the Automatic Payments Discount disclosure.

Annual Interest Rate = Base Rate + Loan Margin. The Base Rate is the90-day average of the daily SOFR published by the Federal Reserve Bank of New York as of two business days immediately preceding the quarterly adjustment date. The APR is variable and may change as the Annual Interest Rate varies with the 90-day SOFR, and therefore, may increase during the life of the loan.

5

Fixed-Rate loan rates are based on creditworthiness and subject to change. The Interest Rate charged and the APR are constant for the life of the loan. The "as low as" rate displayed above is available for the 5-year term and assumes a 0.25% reduction upon borrower enrolling in automatic payments. For more information about the automatic payment borrower benefit, see the Automatic Payments Discount disclosure.

6

Variable-Rate Loan Payment Example: Loan repayment depends on the repayment option elected by the borrower.

A) $25 Monthly Payment Option: Assuming a $10,000 loan amount, a 10-year term and a 5.46% APR, you would make 54 (48 months in school + 6-month grace period) monthly payments of $25 while enrolled in school followed by 120 monthly payments of $121.88 to repay this loan. If the APR is 11.59% and the loan amount remains $10,000, you would make 54 monthly payments of $25 while you are enrolled in school followed by 120 monthly payments of $212.25 to repay this loan. The APR may increase during the life of the loan and can result in higher monthly payments.

B) Interest-Only Option: You would pay the amount of interest that accrued during each month while you are enrolled in school, with a minimum of $25. Thereafter, you would make 120 monthly payments calculated based on the principal balance and accruing interest.

Fixed-Rate Payment Example: Loan repayment depends on the repayment option elected by the borrower.

A) $25 Monthly Payment Option: Assuming a $10,000 loan amount, a 10-year term and a 5.73% APR, you would make 54 (48 months in school + 6-month grace period) monthly payments of $25 while enrolled in school followed by 120 monthly payments of $124.94 to repay this loan. If the APR is 12.41% and the loan amount remains $10,000, you would make 54 monthly payments of $25 while you are enrolled in school followed by 120 monthly payments of $227.99 to repay this loan

B) Interest-Only Option: You would pay the amount of interest that accrued during each month while you are enrolled in school, with a minimum of $25. Thereafter, you would make 120 monthly payments calculated based on the principal balance and accruing interest.

(Video) Everything You Need To Know About Student Loans

FAQs

How hard is it to get a private student loan? ›

Each lender sets its own criteria for eligibility, including credit scores and income. This makes private student loans harder to qualify for than federal loans; you'll generally need good or excellent credit to get a private student loan, whereas most federal student loans don't even require a credit check.

Are they forgiving private student loans? ›

Can you get private student loan forgiveness? Government and independent student loan forgiveness programs don't apply to private student loans. Only federal student loans can be forgiven. That said, your private student loan lender may offer some kind of relief for borrowers in financial distress.

What are the disadvantages of private student loans? ›

Cons
  • Ineligible for income-driven repayment or federal forgiveness.
  • Interest rates might be variable.
  • No federal subsidy.
  • A cosigner may be necessary.
  • Private debt isn't always discharged after death.
24 Aug 2022

Why are private student loans not forgiven? ›

Private student loans make up a little more than 8% of the total outstanding student loan debt, with the national balance for private loans exceeding $140 billion. They aren't eligible for forgiveness because borrowers with private loans owe the independent providers, not the federal government.

Does everyone get approved for private student loans? ›

But you'll need to fit the criteria to qualify. Every private lender sets its own requirements, but you'll typically have to meet minimum credit and income requirements, find a co-signer and enroll at an eligible institution. Plus, there are rules about how you can use private student loan funds.

What is the maximum amount you can borrow private student loans? ›

Independent students can borrow $9,500 to $12,500 annually and up to $57,500 total. If you're a dependent undergrad but your parents don't qualify for a parent PLUS loan, you may be able to borrow up to the federal student loan limits for independent students.

Is Biden canceling private student loans? ›

While there still are some questions, there's one thing we know for sure: The Biden administration is not canceling private student loans. The student loan forgiveness announced by the Biden administration applies only to those with federal student loans.

Is Biden paying off private student loans? ›

The Biden administration will no longer offer loan forgiveness to borrowers with privately held federal student loans as a part of its new student debt relief program, the Education Department said in updated guidance on Thursday, a move that comes as the administration faces legal challenges from some GOP-led states.

How do I get rid of private student loans? ›

One of the few ways to get rid of private student debt is through discharge bankruptcy. It's an arduous — and expensive — process. You'll have to file Chapter 7 or Chapter 13 bankruptcy, then file an additional lawsuit known as an adversary proceeding.

Is a private student loan a good idea? ›

A private loan is best for: Borrowers who have exhausted their federal student loan options and still need money to cover funding gaps in their education. Those who have excellent credit or who have access to a reliable co-signer with excellent credit.

Why do people take private student loans? ›

Students who attend pricier schools are even more likely to need traditional private loans when their federal borrowing options run out. This creates a financial aid gap that may require additional borrowing to pay for the cost of college. Borrowing a traditional private student loan can help fill that gap.

Why should private loans not be your first choice? ›

1. They typically offer less favorable interest rates than federal loans. The higher the interest rate attached to your student loans, the more that debt will cost you to pay off.

Are private student loans forgiven after 20 years? ›

Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 years (if all loans were taken out for undergraduate study) or 25 years (if any loans were taken out for graduate or professional study).

Will my Sallie Mae loans be forgiven? ›

That's because Sallie Mae is a private lender now. And despite what you may have heard — or hoped for based on some 2020 presidential campaign promises — currently there is no such thing as private student loan forgiveness. Forgiveness is limited to federal education loans, and even then, the options are few.

Can I convert my private student loans to federal? ›

Federal student loans can become private loans via refinancing. But there's no way to transfer private student loans to federal. Borrowers who refinance federal student loans into private loans cannot undo this move and should understand its risks.

What is required to get a private student loan? ›

In order to qualify for a private student loan, you have to be 18 years of age or older and be a U.S. citizen or permanent resident. Be prepared to show you're enrolled in an eligible school. Many student loan providers require you to show proof that you're a student enrolled in college before they'll approve a loan.

What credit score is needed for a student loan? ›

Most private lenders require you to have a credit score of at least 670 or higher on a 300-850 scale used by FICO, the most widely known credit score. If you don't have a credit history, you'll need a co-signer with a good credit score and a steady income in order to qualify for the loan.

What is better federal or private student loans? ›

Key Takeaways. You can obtain a student loan through the federal government or private lenders. Federal loans generally have more favorable terms, including flexible repayment options.

What is the max student loan amount 2022? ›

Aggregate Loan Limits

Dependent students: $31,000. Independent undergraduates and dependent students whose parents are unable to obtain PLUS Loans: $57,500. Graduate and professional students: $138,500 (or $224,000 for certain medical training) including undergraduate borrowing.

What happens when you reach your student loan limit? ›

The important takeaway here is that if the total loan amount you've received over the course of your education reaches your aggregate loan limit, you won't be allowed to receive any more federal loans. That being said, there's one exception to the rule.

Is there a limit on Sallie Mae loans? ›

Loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount.

Who qualifies for Biden loan forgiveness? ›

As of March 2022, Federal Student Aid said 8.4 million borrowers with a federal direct loan were enrolled in an IDR plan. Borrowers who verified income through the Free Application for Federal Student Aid (FAFSA) within the past two years may also qualify for automatic forgiveness.

What student loans are not eligible for forgiveness? ›

The borrowers who are not going to be eligible for forgiveness are those who hold older Federal Family Education Loans and Perkins loans that are not held by or on behalf of the U.S. Department of Education.

Who is now eligible for student loan forgiveness? ›

Under Biden's plan, individual borrowers who earned less than $125,000 in either 2020 or 2021 and married couples or heads of households who made less than $250,000 annually in those years will see up to $10,000 of their federal student loan debt forgiven.

Are navient student loans federal or private? ›

Navient no longer services federal student loans, but it still services private student loans.

Can I get money back if I already paid off my student loans? ›

Borrowers who paid off their loans during the pause will need to request a refund first, then request cancellation,” said a spokesperson from the Department of Education. The refund is not available for private student loans. Eligible federal student loans: Direct Loans (defaulted and non defaulted)

When Can student loans be forgiven? ›

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your federal student loans after 120 payments working full-time for federal, state, Tribal, or local government; the military; or a qualifying non-profit.

Do private student loans go away after 7 years? ›

Private student loans don't go away unless you pay them off, but in most cases, they'll fall off your credit report after seven years. But keep in mind that lenders can still contact you to collect an old debt, even if it's decades old and they can no longer take you to court over it.

Can student loans be written off? ›

There's a chance that your student loan could be written off if a certain period of time passes since you were first due to repay it. As we've detailed above, this period varies greatly depending on the type of plan. It could be either when you're 65 years old or anywhere between a duration of 25 years or 30 years.

Can my student loans be forgiven after 10 years? ›

Under the federal program, eligible borrowers can have their loans discharged after 10 years if they meet eligibility requirements.

Why are private student loan rates so high? ›

If you don't pay your mortgage or auto loan, the lender can seize your house or car. But a lender can't seize a college degree! In other words, student loan interest rates are typically higher than secured loans' rates because the lender's risk is higher.

Why is Sallie Mae interest rate so high? ›

If you signed up for a Sallie Mae loan when you entered college, you may have a high interest rate because you were a college student with no credit history and no full-time income. If you have a stable job and a good credit score now, you'll likely be eligible for a lower interest rate.

At what point does it make sense to consider taking out private student loans? ›

Once you've exhausted all of your federal and free money options, then you can consider taking out a private student loan to fill your funding gap. Private student loans are one option families can use to help pay for college.

Do most people take out private student loans? ›

Among the class of 2020, 55% of bachelor's degree recipients took out student loans, graduating with an average of $28,400 in federal and private debt. And 14% of parents with children in the class of 2019 — the latest data available — took out an average of $37,200 in federal parent PLUS loans.

Do private student loans affect credit score? ›

Student loans on your credit report can be good or bad for your credit score. Since student loans are a type of installment credit, having them on your credit report adds to your “credit mix,” which makes up 10% of your score calculation.

Is Sallie Mae a federal loan or private? ›

Today, the federal government makes student loans directly to loan borrowers, and private companies have contracts to service the loans. Sallie Mae is not one of the companies that services federal student loans. If you have a Sallie Mae student loan today, it's a private loan.

What percentage of student loans are private? ›

Private student loans make up 7.89% of the total outstanding U.S. student loans, according to MeasureOne.

How much do experts say you should take out in student loans? ›

Experts say your student loan debt should be less than 15% of your gross income because you'll have so many other expenses, like housing, food and transportation. Remember that you'll still be responsible for repaying your student loans whether or not you graduate and regardless of your earnings.

Can private student loans be deferred? ›

Private student loans are not eligible for federal deferment or forbearance programs. But some private lenders will let you postpone student loan payments temporarily if you run into financial hardship. This process is typically not automatic; you'll need to apply online or by calling your student loan servicer.

Will my private student loans be forgiven? ›

Although it's highly unlikely that private student loans will be included in any government forgiveness plan, there are still some options you can explore to pay off your loans faster or make your monthly bill more manageable.

What happens if I dont pay Sallie Mae? ›

Delinquency and default

You may be charged late fees for delinquency, which can add to your Total Loan Cost. You may lose any interest-rate reduction programs for which you were eligible. Late payments may be reported to consumer reporting agencies and can have a negative impact on your credit report.

Can private student loans garnish Social Security? ›

The good news is, a private student loan lender or servicer cannot garnish your social security. However, they can pursue you to pay the debt. This includes letters and phone calls and even the possibility of taking you to court.

Is Navient and Sallie Mae the same? ›

Today, Navient and Sallie Mae are distinct, separate companies. But they were once under the same umbrella company. When Sallie Mae started in 1972, it serviced federal student loan debt. It eventually took on private student loans, too.

What type of student loans are being forgiven? ›

Nearly every type of federal student loan qualifies for forgiveness, including direct subsidized or unsubsidized loans and graduate or parent PLUS loans. If your loans qualified for the federal student loan payment pause, they're eligible for this forgiveness opportunity.

Do I qualify for student loan forgiveness if I am still in school? ›

If the borrower is still in school and independent, federal student loan forgiveness would be based on the borrower's income. If the borrower is no longer in college, it is based on the borrower's income. More: Who qualifies for forgivenessHow to know the application deadline, get a refund if you paid during pandemic.

How do I get rid of private student loans? ›

One of the few ways to get rid of private student debt is through discharge bankruptcy. It's an arduous — and expensive — process. You'll have to file Chapter 7 or Chapter 13 bankruptcy, then file an additional lawsuit known as an adversary proceeding.

How do you pay off private student loans? ›

Here are seven strategies to help you pay off student loans even faster.
  1. Make extra payments the right way.
  2. Refinance if you have good credit and a steady job.
  3. Enroll in autopay.
  4. Make biweekly payments.
  5. Pay off capitalized interest.
  6. Stick to the standard repayment plan.
  7. Use 'found' money.

Are Navient loans forgiven? ›

The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 (10 years) qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.

What kind of credit score do you need for a student loan? ›

Most private lenders require you to have a credit score of at least 670 or higher on a 300-850 scale used by FICO, the most widely known credit score. If you don't have a credit history, you'll need a co-signer with a good credit score and a steady income in order to qualify for the loan.

What is better federal or private student loans? ›

Key Takeaways. You can obtain a student loan through the federal government or private lenders. Federal loans generally have more favorable terms, including flexible repayment options.

Do private student loans go directly to the school? ›

Private student loans are typically sent straight to your school; they are not sent directly to you (the student). In terms of how long it takes to get your student loan disbursed, your school sets that date, which is usually around the beginning of the semester.

Can I get a private student loan in UK? ›

If you're studying in the UK, there are a number of different loans available, both private student loans and government backed companies.

What score does Sallie Mae use? ›

The FICO® Score provided to you is the FICO® Score 8 based on TransUnion data, and is the same score that Sallie Mae uses, along with other information, to manage your account.

Can I get a private student loan with a 600 credit score? ›

Mid-600s or lower: Most private lenders won't approve you for a student loan without a cosigner. You'll need to rely on student loans options for bad credit, such as federal student loans or applying with a cosigner.

Can you have an 800 credit score with student loans? ›

When you apply for a mortgage, personal loan or private student loan, you won't have to worry about meeting a lender's minimum credit score requirements with a score of 800. As long as you meet other loan requirements, such as income and debt, the lender will likely approve your application.

Will Sallie Mae loans be forgiven? ›

Unfortunately, private student loan borrowers don't have access to the same benefits and repayment plan options that federal student loan borrowers have. Sallie Mae loans, Discover loans, and other private student loans can't be forgiven.

Why would you get private student loans? ›

A private loan is best for: Borrowers who have exhausted their federal student loan options and still need money to cover funding gaps in their education. Those who have excellent credit or who have access to a reliable co-signer with excellent credit.

Is Sallie Mae private or federal? ›

Today, the federal government makes student loans directly to loan borrowers, and private companies have contracts to service the loans. Sallie Mae is not one of the companies that services federal student loans. If you have a Sallie Mae student loan today, it's a private loan.

Is Navient private or federal? ›

Is Navient Federal or Private? While Congress originally created Sallie Mae to support the federal student loan program, it was eventually privatized. Navient is a private company that the U.S. Department of Education once hired to service its federal loans.

What can I use instead of student loans? ›

6 Student Loan Alternatives
  • Apply for (More) Scholarships. There are thousands of scholarships available for college students—and this is money you don't have to pay back. ...
  • Work-Study Programs. ...
  • Apply for Grants. ...
  • Work Part-Time or Saving. ...
  • Employer Sponsorships. ...
  • Income-Share Agreements.
9 May 2022

How do private student loans work UK? ›

Private student loans are those taken out with a lender or loan provider, and not offered through the government. They are generally unsecured personal loans, which let you borrow an agreed amount and then repay it over a fixed term, usually 1-7 years.

How do I pay for university without student loans UK? ›

Scholarships and bursaries - Most universities offer scholarships and bursaries to reward high academic achievement or support students in financial need. The money doesn't need to be paid back, and some amount to thousands of pounds per year.

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