Applying for a loan for college from Education Finance Partners
How can I apply?
Choose from the following ways:
Online
This option is fast, easy, and secure. You can save your application along the way and return later to complete and submit. As soon as you submit your application, you'll receive an instant conditional credit decision. Apply online.
Phone
You may call an Education Finance Partners Private Loan Advisor at 1.866.226.0740 (10a - 7p Eastern Time). Our advisor will guide you through the process to make sure you complete your application successfully. You will get an instant conditional credit decision.
You will receive an instant conditional credit decision.
Step 2: Sign Your Loan Documents
Once your application is conditionally approved, the next step is to sign your loan documents and promissory note. You will receive your documents via U.S. mail. Be sure to review your documents and make copies for your records.
By signing your documents, you are confirming that all information provided in your application is accurate. You are also agreeing to the terms and conditions in your promissory note, and committing to repay the loan according to the terms provided. You can send your signed documents to us via fax or U.S. mail.
Step 3: Receive Your Loan Funds
Once your signed documents have been received, we can process your loan and send your loan funds to your school, or directly to you (depending on your school's preferred method) via a check in the mail.
Can I qualify for a private student loan from Education Finance Partners even if I don't qualify for federal financial aid?
Yes. Your eligibility for an Education Finance Partners loan is based on your credit (or your cosigner's credit, if applicable).
Can I apply for an Education Finance Partners private student loan even if I didn't complete the Free Application for Federal Student Aid (FAFSA)?
Yes. The FAFSA needs to be completed in order to receive federal loans. The Education Finance Partners private student loan is credit-based and does not require a completed FAFSA.
How do I know which borrower option is right for me?
The Education Finance Partners Private Student Loan offers three borrower options: student as borrower, student with cosigner, and sponsors as borrowers. At least one borrower on the loan must meet the minimum credit criteria (have an established credit history). Even if you are eligible to apply on your own, you should consider applying with a creditworthy cosigner to obtain the best possible loan terms.
Do I need to talk to my school about an alternative student loan from Education Finance Partners?
No. However, your financial aid advisor can advise you about the options for funding your education.
Is there a minimum loan amount?
No.
Is there a maximum loan amount?
The maximum amount you can borrow each school term is the total cost of your education (including tuition, fees, and any education-related expense) minus any federal financial aid you accepted. However, there is no limit on the total amount you can borrow over the course of your education.
Can I change my loan amount after I submit an application?
Yes. You can change your loan amount by calling a Private Loan Advisor at 1.866.226.0740.
Borrowing with a cosigner
Do I need a cosigner if I don't have good credit?
If you don't have good credit, or don't meet the minimum credit criteria (i.e., have an established credit history), you should consider applying with a creditworthy cosigner to obtain the best possible loan terms. Even with poor credit, you may still apply on your own, but you may receive less favorable loan terms.
If I apply with a cosigner, can I assume sole responsibility for the loan at a later date?
Yes. The primary borrower can release the cosigner from responsibility for the loan after 24 months of consecutive on-time payments. To request a cosigner release, the borrower must submit a cosigner release request form. To obtain a form, call a Private Loan Advisor at 1.866.226.0740.
Fees and interest rates
How is the interest calculated on my loan?
Rates and fees are determined based on the borrower's credit history at the time of application and the repayment option chosen. Variable interest rates are subject to change quarterly based on the fluctuation of the 3-Month LIBOR rate published in The Wall Street Journal.
What is the 3-Month LIBOR Index mentioned in the rates?
The London Interbank Offer Rate (LIBOR) Index is an average of the interest rate on dollar-denominated deposits traded between banks in London. The LIBOR Index is an international index that follows world economic conditions. It allows international investors to match their cost of lending to their cost of funds. The LIBOR is used as a base index for setting rates of many adjustable rate financial instruments, including Adjustable Rate Mortgages (ARM). The majority of private loan providers use LIBOR or the prime rate to set interest rates. LIBOR fluctuates less than the prime rate, which has tended to experience larger, sporadic changes. Education Finance Partners uses the 3-Month LIBOR as the base index for setting the variable interest rate.
The LIBOR rate is reported in The Wall Street Journal's "Money Rates" table. The Money Rates table includes LIBOR rates with different maturities, such as 1-week and 3-month. Education Finance Partners uses the 3-Month LIBOR as the base index for setting the variable interest rate.
What does interest capitalization mean?
If a borrower elects to defer payments while in school or studying, the interest accrued while in deferment is added to the loan balance. This is known as interest capitalization. It increases both the principal balance and the monthly payment amounts.
Are there any fees associated with the Education Finance Partners Private Loan?
You may or may not have fees associated with your loan. Fees are determined by the borrower's credit history at the time of application and by the repayment option chosen.
Are the interest payments tax deductible?
Tax deductions are available to any borrower with a "qualified" student loan. A qualified education loan is a loan used to cover the cost of attendance at an eligible college, university, vocational school, or other postsecondary educational institution. This applies to students enrolled at least half time in a program leading to a degree, certificate, or other recognized educational credential. To qualify your Education Finance Partners Private Loan, send us a completed W-9S form, an IRS form that serves as your certification that the funds were used solely for education expenses. You should also seek advice from a qualified tax advisor regarding your specific situation.
Signing your loan documents
How do I sign my loan documents?
You will receive your loan documents via U.S. mail. Once you've reviewed your documents and made copies for your records, sign them and send them to us via fax (1.866.378.9347) or U.S. mail:
Education Finance Partners, Inc.
P.O. Box 85400
Austin, TX 78708-5400
Receiving loan funds
How do I receive my loan funds?
Loan funds are disbursed according to the school's requirements. Some schools require that loan funds are sent directly to the financial aid office.The school then applies the loan funds to the student's account. Other schools prefer that the loan funds be disbursed directly to the borrower. When the loan is disbursed, the borrower is notified via mail of the exact loan amount and where the funds will be sent.
Using your loan funds
Can I apply for a private student loan now and use the funds for education-related expenses from an academic period in the past?
Yes. You can use your loan funds to pay for any education-related expense incurred up to 12 months in the past.
Can I use a private student loan from Education Finance Partners for items other than tuition?
Yes. The loan can be used for any education-related expenses, including, but not limited to, tuition, fees, books, a computer, supplies, room and board, and transportation.
Repaying a private student loan
Do I have to pay back my private student loan?
Yes. Your student loans are obligations that need to be repaid. You need to repay the principal (the amount borrowed), the interest (finance charges on the principal), and all fees and charges, regardless of whether the student completes his or her education.
If I don't finish college, or if I'm unsatisfied with my education, do I need to repay my student loan?
Yes. Your student loans are obligations that need to be repaid. You are responsible for all amounts due under your promissory note.
What happens if I don't repay my student loan?
If you do not repay your student loan according to the terms disclosed on your promissory note, you may eventually be in default on the loan. Consequences may include:
An adverse effect on your credit rating that may limit your ability to borrow for a car, home or credit card.
A requirement to immediately repay the entire amount of the loan, including interest.
Withholding of your wages to pay your debt.
Are loan payments required while the student is in school?
No. The borrower can choose to defer all payments while the student is enrolled at least half-time.
After I choose an in-school payment option, can I change my selection?
Please give careful consideration to the repayment option that is best for you while you are attending school. If you want to change payment options, we will try to accommodate your request, but we can not guarantee it. To request a different payment option you can send an email or call a Private Loan Advisor at 1.866.226.0740.
Are interest payments required during deferment?
No. The borrower may choose to defer interest payments, as well as principal payments, while the student is in school. However, unpaid accrued interest is capitalized at repayment and increases the repayment amount. To reduce the overall cost of the loan, borrowers should consider making principal and interest payments while the student is in school.
Are deferments renewable?
No. The maximum deferment period is 60 months from the first disbursement date.
How much will my monthly payments be?
Your monthly payment amount will depend on how much you borrow and what repayment option you select. To estimate your monthly loan payment amount, use our student loan repayment calculator.
Will the total amount I have to repay stay the same?
No. Your repayment is a combination of both principal and interest. Your Education Finance Partners Private Student Loan is a variable rate loan. Therefore, your monthly payments and the total interest you pay will depend upon the movement of interest rates. Also, the amount you repay each month will determine how quickly you pay off your loan obligation and the total interest applied to it. There are no prepayment penalties, so you can pay off your loan as soon as you are ready.
How long do I get to repay my loan(s)?
The maximum repayment period for an Education Finance Partners private student loan is 240 months. Any periods of deferment and/or forbearance do not count toward the repayment period.
Are there any prepayment penalties?
No. You can pay off all or part of your loan at anytime without penalty.
Can I have payments deducted automatically from my bank account?
Yes. If you elect to have your loan payments automatically deducted from your bank account you can receive a 0.25% interest rate discount.
Forbearance
What are my options if I can't afford my minimum monthly payment?
During the loan repayment period, a borrower may request a forbearance. A forbearance is a temporary postponement or reduction of loan payments, for a maximum of six months, based on financial hardship. Forbearance is granted at the lender's discretion. The lender may grant a forbearance request no more than once per calendar year and no more than twice during the life of the loan.
How do I know whether I am eligible for a forbearance?
Requests for a forbearance are awarded on a case-by-case basis through the lender, or the loan servicer on behalf of the lender.
When should I apply for a forbearance?
It is best to apply at least 30 days before you want the forbearance to start. Regular payments must be made until you receive notice that a forbearance has been granted.
How long does it take for my forbearance to be processed?
It takes approximately five business days for a forbearance to be processed once the request has been received.
Private Consolidation Loan FAQs
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