Private Loans

New York Institute of Technology is not affiliated with any private educational lender and encourages students to use all federal and state funding sources prior to seeking funds from private educational lenders. The Office of Financial Aid will offer helpful advice to all students on resources that best suit financing their educational needs.

Additional information can be found at Financial Aid – Loans and Truth in Lending (TILA).

Once you have received and responded to your Financial Assistance Plan, you can apply for private loans. Helpful information on private loans is listed below. Remember that Federal Direct Loans are also available.

As a borrower, you have the right and ability to borrow student and/or parent private loan funds using any lender you choose. The university encourages students to research and select any of the many educational lenders that provide meaningful benefits to your specific needs. Please note that borrower benefits and lender fees may vary by lender.

Many lenders have an online application process and will inform you of the credit decision within 24–48 hours. The lender will notify the Office of Financial Aid of your loan approval. You may also contact the Office of Financial Aid at or 516.686.7680 to inform us if you have been approved for a private student loan so that we may process and certify your loan correctly. As always, we are here to assist you in any way possible. Helping our students to achieve their academic goals is our top priority.

Private student loans are used to fill the gap between the cost of education and financial aid received. It is recommended that you first borrow the maximum Federal Direct Loans for which you are eligible and consider the Federal Parent Loans for Undergraduate Students (PLUS) loan before applying for an alternative student loan. The Federal PLUS loan is usually less expensive than an alternative loan. In addition, alternative loans are based on credit and debt-to-income ratio whereas the PLUS loan is based on credit only.

Some private loan lenders charge fees on their loans, which can significantly increase the cost of the loan. A loan with a relatively low interest rate but high fees may ultimately cost more than a loan with a higher interest rate and no fees. Also, be aware that the higher the number of payments/years that you have to repay the loan, the more money you will pay in interest over the life of the loan.

Lower rates are generally offered to students with extremely good credit scores. The rates and fees generally increase proportionately as credit scores decline. Many lenders will require school certification and will not lend more than what the school determines to fit into the total cost of education less all other financial aid received.

Private loan lenders often defer the principal payment while the student is in school, and up to six months or more after the student's last date of attendance (known as a grace period). During the time of principal deferment, interest is still accruing on these loans. If a student elects not to pay interest while in school, the lender will add the interest to the principal loan amount (capitalization). It is not uncommon for a lender to advertise lower interest rates during in-school and grace periods and then increase the interest rate when full repayment begins.

Students may apply for a private loan with a creditworthy co-borrower if they are unable to borrow a loan on their own. In some cases, it may be advisable to have a co-borrower even if they are able to borrow a loan on their own, as many lenders offer lower interest rates and/or fees for loans with a creditworthy co-borrower.