Private Educational Loans

AB 721

AB 721 requires that Ventura College disclose to the private loan applicant that Federal Direct Loans are required by law to provide a range of flexible repayment options, including, but not limited to, income-based repayment and income-contingent repayment plans, and loan forgiveness benefits, which other student loans (possibly private loans) are not required to provide. In addition, Federal Direct Loans are available to students regardless of income or credit worthiness.

What are Private Loans?

Private loans are funded by banks, credit unions or other private lending institutions. Private loans serve as an private funding resource, but typically do not include many of the benefits that federal students loans do such as deferment provisions, fixed interest rates, and income-based repayment plans. All students who are considering private loans should first submit a FAFSA and learn about their eligibility for federal loans before applying for a private loan. Keep in mind that private loans, along with other aid and educational resources, can never exceed the Cost of Attendance.

Compare Private Loans to Federal Loans

Loans offer you the opportunity to cover the cost of your educational expenses. It is important to explore all options and find what works best for you and your family. The Federal Student Loans VS Private Student Loans Comparison Chart provides you with additional information on the differences between the Federal PLUS Loan and Private Student Loan options for those families who demonstrate credit worthiness and wish to explore private options that may better suit your family's financial situation.

Compare Private Loans

When choosing a private loan, there are many factors to consider, including the fees the lender charges to make the loan, the interest rate, repayment terms and deferment options. Lenders are required by federal law to collect the Private Loan Certification Form. If you plan to apply for a private loan, complete and submit this form to your lender.

As a general rule, students should only consider obtaining a private educational loan if they have maxed out the Federal Direct Loan. We strongly encourage students to file a Free Application for Federal Student Aid (FAFSA) which may qualify them for grants, work-study and Federal Direct Loans. Undergraduate dependent students should also compare costs with the Federal Direct Parent PLUS Loan, as this loan is usually much less expensive and has better repayment terms.

How do I apply for a Private Loan at Ventura College?

Complete a Free Application for Federal Student Aid (FAFSA) online at www.FAFSA.gov for the school year you intend to enroll. Ventura College’s Federal School Code is 001334.
Complete an educational loan application through a banking institution of your choice and submit the Private Loan Certification Form to the lender. Many banks offer Private Loans; please visit their website for further instructions and applications. Many allow you to apply online, but you may also request the private loan paperwork be sent to you by mail. Complete all required paperwork and return it directly to the lender. Please be aware that you may need a co-signer as these loans are credit based.
Continue to meet the minimum Ventura College Satisfactory Academic Progress (SAP) standards to ensure eligibility.
Enroll in 6 or more degree-applicable units for an eligible Ventura College program of study during the desired loan application period. For example: If you will be submitting a private loan request for the upcoming school year, you must wait until you enroll in a minimum of 6 units for the Fall semester (usually in June/July before the semester begins).
Complete the Private Loan Request Form (available at the Financial Aid Forms page or from the Financial Aid Office), and submit it to the Ventura College Financial Aid Office.

Please Note: You must be a U.S. citizen or permanent resident to apply.

How much can I borrow?

Generally, the minimum private loan amount you can request is $1,000. The maximum you can borrow is your Cost of Attendance (COA) minus any financial aid, which includes Direct Loans. The amount borrowed cannot exceed the student’s budget, or cost of attendance, as determined by the school.

What is the deadline to apply?

See the Important Dates page for all deadlines, or contact the Financial Aid Office.

*Loan requests received after the application deadline will not be processed

Can I be denied for a Private Loan?

Yes, as private loans are credit-based loans. If denied, contact your lender for information concerning any resolution options available to you.

What is the enrollment requirement for a Private Loan?

Enrollment requirements vary according to the lender, but most lenders require a minimum half-time (6.0 units) enrollment. Please refer to your lender's website for additional information.