Private Education Loans

Colorado School of Mines

Understanding Private Education Loans

Private education loans are loans offered by banks, credit unions, and other lenders that help students and families pay for college costs that aren’t covered by other financial aid. Private educational loans are non-federal loans, meaning a Free Application for Federal Student Aid (FAFSA) is not required for this type of loan. These loans are based on credit information. Most students will need someone with good credit, called a cosigner, to apply with them.

Before taking out a private education loan, students should complete the FAFSA to see if they qualify for other aid. Federal student loans usually have a lower interest rate and more flexible repayment options than private loans. However the amount a student can borrow in federal student loans is very limited.

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International students interested in borrowing a private education loan, should look into the International Education Financial Aid (IEFA) resource page. This resource reviews options specifically for international students.

If you are currently ineligible for federal student aid due to not meeting satisfactory academic progress, you should appeal the loss of your aid through our SAP Appeal process.

Applying for Private Education Loans

Mines does not endorse or recommend one private education lender over another. Private education loans have a wide range of terms so we do not provide a list of lenders. By researching and comparing different lenders, you can find the best interest rates, repayment plans, and benefits for your financial situation.

Private education loans are different from personal loans. Education loans are made specifically to pay for college costs. They usually offer lower interest rates and longer repayment terms than personal loans. Education loan funds are typically sent directly to Mines to cover your bill.

Before taking out a private education loan, read all the terms and conditions. Only borrow what you need, and continue to look for scholarships throughout your attendance.

Some lenders also offer parent loans. These allow a parent or other person with good credit to borrow money for the student without the student being responsible for repayment.

When you apply for a private education loan, your lender will ask you to complete a Self-Certification Form. This form includes information about your Mines Cost of Attendance and aid package received. You can find that information in Trailhead>Financial Aid card>Financial Aid Details.

Mines utilizes elmselect.com as the common portal for private education loans. ELM Select allows you to compare a variety of lenders who have historically been used by students attending Mines. Students and families may pursue a private education loan through any bank or lender of their choosing even if they are not listed in ELM Select.

Compare Private Education Loan Providers

Processing Timeframes

Once you apply for a private education loan on the lender’s website, they will send an electronic certification request to Mines within 2 business days. Our office will review your eligibility based on your enrollment and Cost of Attendance.

Mines reviews loan certification requests usually within two weeks. You will receive an email at your Mines email account when the loan has been certified.

The timing of the loan disbursement depends on the lender and time of the school year. In most cases, your loan will not disburse earlier than one week before the first day of class or one week after you receive your Final Disclosure notice from the lender.

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Mines recommends applying for private education loans in plenty of time before a term begins. If you will be enrolled in both fall and spring, you should apply for both semesters together. Funds will disburse for each semester at the start of the term.

Fall-only and Fall/Spring Loans: Apply beginning in June. The loan period for fall only loans is August to December. The loan period for fall/spring loans is August to May. The priority deadline for these loans is July 31 to ensure the loan pays toward your bill before the due date.
Spring only Loans: Apply beginning in November. The loan period for spring only loans is January to May. The priority deadline for these loans is January 1.
Summer Loans: Apply beginning in April. The loan period is May to August. Summer loans are always separate from other terms. The priority deadline is May 1.

Loan Cancellation

The total of all aid received in a term cannot exceed the Cost of Attendance. If you borrow up to your maximum cost of attendance and you receive additional grant, scholarship, or merit aid, your loan will be reduced to make room for the award.

If you borrowed more than needed for your out of pocket expenses, you may ask Mines to reduce your loan at any time during the semester as long as you are still attending class. Students can reduce future and prior semesters as long as they are in the same academic year (school year). If a refund has already been sent to the student for the excess funds, a reduction of the current term will create a balance due to Mines.

To reduce the loan:

The student must email finaid@mines.edu from their Mines email address
The request must include their CWID
The email must include the amount to return
The student should indicate if they want to adjust a future or prior term also or only the current term.