Other Loans

Private/Alternative Loans

Choosing a Private Loan

When choosing a private education loan, you should compare the loan terms offered by several programs in order to choose the best fit for your situation. You can learn about and compare private loan terms from multiple lenders side-by-side using the ELM Select online tool, which provides information for the loan programs most frequently used by Stanford students over the past three academic years.

Please note that you are not limited to lenders listed in the ELM Select tool; you can borrow from any lender. Many state-based nonprofit organizations offer student loans that may offer favorable terms to residents, even including those who are attending college in other states. The Education Finance Council offers a state-by-state directory of these programs. 
Private loan options for international students are limited, and most lenders require applicants to have a credit-worthy co-signer who is a U.S. resident. You can find information about lenders that will consider international applicants without a co-signer at  ELM Select for International Students.
Here are several points you should research when considering a private loan: 

  • What is the interest rate; is it fixed or variable; is the rate capped?
  • What fees must be paid for this loan, and when are they due?
  • When does repayment begin, and is there a grace period?
  • What will my monthly payment be?
  • What will be the total cost if I use the full repayment period?
  • Are there penalties for early repayment? 
  • Are there deferment or forbearance options?
  • Is the loan program well-established?

Most private loan programs require our office to certify your eligibility before approving your loan. If you receive financial aid, you must notify our office of any private loans you borrow as it may affect your aid eligibility.

Private Loans vs. Federal Loans

While private education loans may offer attractive terms, federal loans can offer greater certainty about costs and repayment options, since these loan terms are defined in federal law.  Students often choose to borrow federal loans up to the annual limit, and then use private loans to cover any remaining costs.  You can learn about the advantages of federal loans on our web pages for Direct Loans and Direct PLUS Loans.

Self-Certification Form

Regardless of which private loan program you choose, you will need to complete a self-certification form before receiving your first disbursement of loan funds. Your lender will provide this form to you during the application process. You can also go here to download the Private Education Loan Applicant Self-Certification form.

In Section 2 of the self-certification form, you will be asked to provide the following three dollar amounts:

A. Student's cost of attendance for the period of enrollment covered by the loan
B. Estimated financial assistance
C. Difference between amounts A and B

You can find the amounts for items A and B on your most recent financial aid notification (available in Axess). For item A, use the figure listed for Total Expenses. For item B, add the Total Grants and Scholarships plus any student loans and federal work-study eligibility that you’ve accepted.

If you have trouble locating these figures, you may contact the Financial Aid Office for assistance.

Final Disclosure and Right-to-Cancel Period

Under the federal Truth in Lending Act (TILA), your lender must provide you with a finalized disclosure statement after you have signed your promissory note. The final disclosure statement confirms the terms and conditions of your loan.

At the time that this final disclosure is delivered, your "right-to-cancel" period begins. During this period of three to six business days, you may cancel the loan by contacting the lender. The lender cannot release the first disbursement of your loan funds until the end of the right-to-cancel period.

Updated on June 9, 2026 9:04 AM