Private US Student Loans

Information for students taking out Private US Loans

Private loans are potentially available to most US citizens, and often provide an alternative funding source for students who are ineligible for US Federal Loans or wish to take this option instead of a Federal Loan. It is important to carefully compare the terms and conditions (including the interest rates, fees and repayment terms) before making a decision. We advise that students exhaust all Federal Loans and scholarship opportunities before applying for a private loan lender.

Private loans are credit-based, and applications must be submitted directly to the lender by you and/or your family. Each lender sets its own credit and eligibility criteria, which must be met for approval. Good credit history is likely to be necessary and a co-signer may be required. 

Please note that in order to be eligible you must be enrolled and studying on a course which is administered by the University of Edinburgh. For this reason visiting students will need to apply for loans via their home institution.

Which loan provider can I use? 

The University will work with whichever lender you choose, however, it is important to check that  lender offers to study at foreign schools. The University of Edinburgh does not endorse any private lender. However, the University is currently approved to work with the following Private Alternative Loan lenders: 

As you explore options to finance your education, we want to ensure you make informed and secure decisions. Whilst private loans can be a viable resource, it is crucial to exercise caution and conduct thorough research before committing to any agreement.

With the upcoming changes to US Financial Aid and the removal of Grad PLUS loans, new lenders may enter the market. This increased competition could lead to a wider variety of options but also necessitates heightened vigilance in evaluating these lenders.

Important Considerations

  • Loan Limits: You can borrow up to - but not more than - your maximum Cost of Attendance (CoA). You are not required to borrow the full amount available. Private student loans do not enable you to borrow additional US loan funds above your cost of attendance even if you borrow a combination of US Federal and Private loans.
  • Co-Signer: Applying with a creditworthy co-signer may increase your chances of approval and could result in lower interest rates and fees. The co-signer would assume responsibility for a loan should the borrower fail to repay. 

To find out how much you are eligible to borrow, please complete a US Loans Enquiry Form and let us know that you intend to use private loans. We will then provide you with a financial aid package outlining your maximum eligible amount. 

After your Loan is Approved 

Once your loan application has been approved: 

  • Notify the US Loans Team by submitting a US Loans Enquiry Form
  • We will then contact you asking you to completed and return a signed financial aid package.
  • We will then certify your loan so that funds can be released 

Receiving your Private Loan 

Private loan disbursements follow the disbursement schedule of US Federal Loans. Private loan disbursements are not available before or immediately at the start of the academic year. Please ensure you have sufficient funds to cover your visa application, travel to the University and your first few weeks living expenses. 

The loan will be sent directly to the University where institutional charges will be deducted. Any remaining balance will be refunded to you for living expenses. 

To avoid delays, we recommend setting up a UK bank account upon arrival (if you are studying on campus). Funds can also be sent to a U.S. bank account, but this may take several extra days to process. 

The disbursement date is the date your funds are released by the Private Loan lender, not the date that you will receive the payment. You must be fully enrolled before your funds can be requested from a Private Loan lender. If you have not completed your enrolment by the deadline, your loan payment will be postponed to the next scheduled disbursement date. 

Your funds will be converted to £GBP on receipt and currency conversion costs will apply. Although the CoA uses a static exchange rate to calculate costs, the actual amount the University receives may be different as it will depend on the exchange rate on the date the funds are received. 


To increase your loan within the limits of your CoA, please submit the following form if you wish to increase / decrease / cancel your loan? 

Increase/Decrease/Cancellation Form


If you have previously borrowed a loan through a private lender that does not use NSLDS and would like us to complete a paper deferment form, please email the US Loans Team with a copy of the required form, ensuring you have first completed any sections to be filled out by the borrower.


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