Private Student Loans

If federal aid, along with scholarships, state grants, tuition waivers and personal savings is not enough to cover your educational expenses, you may wish to consider borrowing a private student loan. Below you will find information which should help guide you through the process of deciding if a private student loan is right for you.

Private student loans are non-federal, interest-bearing loans through private lenders. Private student loans are available for both students and parents. Approval is not guaranteed. Student borrowers may need a co-signer with an established credit history. There are a variety of private student loans available and it’s up to the student and co-signer to choose the one that is best for them and their financial situation.

Private student loans are available to undergraduate and graduate students. Lender requirements may vary; contact the lender directly for all eligibility requirements.

Options to Fill the Financial Gap

A comparison of the federal Direct PLUS Loan (for parents) and private student loans (for students and parents)

Category Federal Direct PLUS Loan for a Parent Borrower Private Student Loan Certified by the School
Borrower Parent Student or Parent
Credit Check Yes Yes
Cosigner Requirement No, but a parent with adverse credit may obtain an endorser No, but a student or parent with little or no credit history may be denied
Cosigner Release Option This loan does not have a cosigner requirement Some lenders will offer a cosigner release option where the student can apply to release the cosigner after they graduate, make a specific number of on-time payments, and may need to meet underwriting requirements
Interest Rate Fixed 8.94% for loans 7/1/2025 to 6/30/2026 Varies by lender – options could be fixed or variable; and will be based on creditworthiness.
Other fees Origination fee: 4.228% for loans disbursed 7/1/2025 to 6/30/2026 No origination fees
Minimum payment Loans will automatically be placed in principal and interest repayment. The parent borrower can request to defer PLUS loan payments while their student is in school and for six months after graduation, leaving school, or dropping below half-time enrollment (interest continues to accrue during this time and unpaid interest is added to the loan’s principal amount when the deferment period ends). Varies by lender. Some lenders will allow private loan payments to be deferred while the student is in school (interest accrues during this time and unpaid interest is added to the loan’s principal amount when the deferment period ends). Some lenders have an option to make interest only payments while a student is enrolled at least half-time.
Repayment 10-25 years (principal and interest payments) Varies by lender. Terms of 5-20 years of principal and interest payments.
Payment flexibility Multiple repayment plans include: standard, graduated, and extended repayment options, federal consolidation, and some public service loan forgiveness options. See StudentAid.gov for more information. Varies by lender. You should contact the lender of choice for specific options.
Responsibility to Pay Parent (or endorser if applicable) Student and cosigner
Loan Limits Up to Cost of Attendance minus any other financial aid received. Amount determined by the lender and could be a maximum up to Cost of Attendance minus any other financial aid received.
Minimum enrollment status At least half-time Varies by lender – some will offer for less than half-time enrollment.
Application process Online at www.StudentAid.gov. New borrowers will need to complete a Master Promissory Note (MPN). Online with the lender of choice. Some lenders may do an application over the phone or in person.
Is FAFSA required? Yes Varies by lender. Some lenders do require a FAFSA prior to the certification of a private student loan.
Death and Disability Loan Forgiveness Yes. If the parent dies or becomes totally and permanently disabled; or if the student beneficiary dies and certain conditions are met, then the loan will be discharged. Varies by lender. Some lenders may waive the remaining balance in the event of the borrower’s death or permanent/total disability.
Consolidation Yes. Parents can consolidate with other federal loans in their name (not the student’s). Generally, no. However, you should check with your lender.
Option if denied If a parent is unable to obtain the loan, the student may be eligible for additional unsubsidized loans. Student can choose a different cosigner.
Tax deduction for interest paid The interest paid on the loan may be deductible subject to IRS guidelines. Consult with your tax advisor. Financial Aid offices cannot offer tax advice. The interest paid on the loan may be deductible subject to IRS guidelines. Consult with your tax advisor. Financial Aid offices cannot offer tax advice.

Instead of asking "How much can I apply for?" consider how much you really need. The answer to this question is going to be different for each student based on your cost to attend NDSU (tuition, room and board, books, etc.) and the financial aid you are already receiving. Students should only borrow what is necessary to cover college costs. There is a maximum amount students are allowed to apply for; below are the steps to determine what the maximum private loan amount is for the academic year (fall/spring) and summer semester.

  1. Log into Campus Connection.
    • NOTE - You must complete the NDSU New Student Setup to activate your User ID, or you will be unable to log into Campus Connection. Follow the step-by-step instructions to activate your Campus Connection User ID. The normal format for this ID is firstname.lastname. If you are unsure whether or not you have claimed your User ID, check through the Have I Claimed My Account page.
    • If you have previously attended another North Dakota University System (NDUS) institution you may already have an existing Campus Connection User ID. Please continue using this existing User ID to access Campus Connection at NDSU.
    • If you experience problems or have questions about your System ID, please call the N.D. University System Help Desk at 866-546-6387 or submit a Help Desk ticket: helpdesk.ndus.edu
  2. Click on the Financial Aid tile
  3. Click Financial Aid Summary on the left side bar
  4. Select Academic Year or Summer at the top of the page
  5. Subtract Total Aid from Estimated Cost of Attendance to determine the maximum private loan amount you are eligible to borrow for either the Academic Year (fall/spring) or Summer. If this amount is not enough to cover your expenses, you may want to consider applying for a Budget Increase.
    • Example: The student has a Estimated Cost of Attendance for the Academic Year of $23,868 and Total Aid of $10,895 which means the maximum private loan amount they could borrow is $12,973.

NOTE: Look back loans (loans used to cover balances due for a semester that has ended) can only be approved for the balance due at NDSU.

NDSU offers an online loan comparison and application tool for you to use called FastChoice. FastChoice is designed to assist you in making the private loan choice that is best for you. FastChoice is not a lender. Select the link within FastChoice for Parent - Private Loan Options to view only parent loans. Please keep in mind that you may select any lender of your choice, even if they do not appear on FastChoice.

Enter FastChoice

NOTE: NDSU Financial Aid and Scholarships and its staff do not endorse or accept any incentives, financial or otherwise, from the lenders listed on FastChoice. Lender information is provided as a courtesy and in no way should it be interpreted as a requirement to use one of the listed lenders. NDSU will process loans from any lender that participates in any educational loan programs.

IMPORTANT UPDATE: Private loans for the fall semester will begin being reviewed in July.

Private Student Loan Deadlines

While there is no specific deadline for applying for a private loan during the semester you are attending, you will want to apply before the semester has ended. Please be aware processing of private loans may be delayed due to increases in loan volume at peak times of the year (August, September, January and February). It is recommended that you apply as soon as possible once you know what private loan funding you will need. You should allow up to three weeks once NDSU receives the request from your lender for you to see the update to your Financial Aid Summary in your Campus Connection portal. If it has been longer than three weeks please complete the inquiry form below. Your patience is greatly appreciated during peak processing times.

Recommended Application Dates

Summer 2025 Semester Only: June 2, 2025
2025-2026 Academic Year: August 1, 2025
Fall 2025 Semester Only: August 1, 2025
Spring 2026 Semester Only: December 15, 2025

Contact Tammy Fraase for further questions.

To apply for a private loan click on the FastChoice link above. If you have a question related to an existing private loan please submit your inquiry below.

Other Private Student Loan Options

There are other private student loan options. If your parents prefer to be the primary borrower of the loan rather than the co-signer, then your parent may want to consider the Federal Direct PLUS Loan. Be sure to review the section above for options to consider when you need to fill the financial gap. If you are a North Dakota resident, you may meet the requirements for the Gabriel Brown Trust Loan.

Gabriel J. Brown Trust

The Gabriel J. Brown Trust has lowered their borrowing rate to 5%*. The trust has funds available and will accept applications until the funds have been depleted.

The applicant must meet the following qualifications to be eligible for a student loan:

  1. Be a resident of North Dakota
  2. Have been in attendance at a college or university equaling:
    • Four semesters OR
    • Have acquired 48 semester hours of credit
  3. Have maintained a grade point average of over 2.5 based upon a 4.0 grading system in their college or university work
  4. Be in need of educational financial assistance

*Rate is subject to change.

Eligible applicants can obtain a loan application by writing to:

Susan Lundberg, Trustee
Gabriel J. Brown Trust
112 Ave. E West Bismarck, N.D. 58501
Email: lundberg1@bis.midco.net

NOTE: NDSU Financial Aid and Scholarships and its staff do not endorse or accept any incentives, financial or otherwise, from the lenders listed on FastChoice. Lender information is provided as a courtesy and in no way should it be interpreted as a requirement to use one of the listed lenders. NDSU will process loans from any lender that participates in any educational loan programs.

Private Loan Frequently Asked Questions

Below you will find a list of frequently asked questions regarding private student loans.

Private loans can be used to pay for a balance due from a semester that has ended, these are referred to as look back loans. Refer to the FastChoice loan comparison tool above and click on "Look Back Loans" to review the list of participating lenders. You will want to review each lenders criteria to make sure you are eligible; for example, Satisfactory Academic Progress is a requirement for some look back loans. Please contact Tammy Fraase with any questions.

NDSU strongly encourages students to complete the Free Application for Federal Student Aid (FAFSA) prior to pursuing a private loan. Federal Direct Loans tend to offer lower fixed interest rates and benefits that private loans may not offer.

NOTE: Some lenders require the FAFSA to be completed (Bank of North Dakota DEAL Loan and MN SELF Loan).

No. International students are not eligible to complete the Free Application for Federal Student Aid (FAFSA).

Yes. A private loan will not be certified until the verification process is completed.

Per federal regulation, NDSU is prohibited from referring a student to any lender. However, NDSU does offer a private loan comparison and application tool on our website called FastChoice (see above). FastChoice lists private loan lenders that NDSU students have used in the past three years. NDSU does advise students to do some “shopping” to find the loan that works best for them.

The maximum private loan a student can borrow is calculated in the following way:

[Cost of Attendance (COA)] minus [Total of all federal or state aid, scholarships, and waivers] equals [Private loan eligibility]

The cost of attendance (COA) is not the bill that you may get from NDSU; it is the total estimated amount it will cost you to go to college each year. The COA includes tuition and fees; on-campus room and board (or a housing and food allowance for off-campus students); and allowances for books, supplies, transportation, loan fees, and, if applicable, dependent care. NOTE: The COA for graduate and professional programs is usually higher than for undergraduate programs.

Private loans must be within a student’s Cost of Attendance (COA). Depending on the loan period they requested, it may have to be reduced. If a student is requesting a loan for a single term, NDSU will use only one semester’s COA to approve a loan amount.

Cost of Attendance (COA) is determined by factors such as your state of residence and enrollment status.

Example: Student has a full year COA of $18,000. They have been awarded $5,500 in Federal Direct Loans for the year and a scholarship of $1000 for the fall. They are requesting a private loan for fall only of $10,000. The loan can only be certified for $5,250 for a fall only loan. NDSU would use $9,000 as the COA and subtract the aid received that semester ($3,750) which leaves $5,250 for a private loan maximum.

This will depend on you and the lender. Loan approvals can take anywhere from a couple days to a couple weeks. If the lender has all the paperwork, they require to complete the loan, they will send the request for certification to NDSU. Certification by NDSU can take up to four weeks.

NOTE: August, September, January, and February are the months when volume is very high, please allow additional time during these months.

Before loan funds will be sent to the school, some lenders may then request additional paperwork to be completed by the student after they receive the certification from the school. When the student completes all lender requirements, they will start the rescission period. The rescission period may be 8-10 business days. If the student fails to complete the items the lender requires, the loan funds will not be sent to the school. If the student would like to know the exact date the lender will send the funds to the school, they should contact the lender directly.

You will need to contact Tammy Fraase, to request a loan period change on your private loan. Not all loans can be changed after the certification process is complete.

Private loans will not transfer with you. You will need to apply for another loan at the new school using the new school’s information.

You will need to notify Tammy Fraase (tammy.fraase@ndsu.edu) regarding the processing of your loan as the process is different with each lender.

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