Alternative Loans

Private Education Loans

Private education loans (also known as alternative loans) can be an option when federal or state financial aid doesn't fully cover your educational costs.

These loans may be helpful if you've reached your annual or lifetime federal loan limits, have a suspension of aid eligibility, or need to cover a past-due balance from a previous term.

We strongly recommend that students borrow the maximum available federal student loans before considering private loans, as federal loans typically offer lower interest rates, more flexible repayment options, and borrower protections. Parents should also compare Federal Parent PLUS Loans with private loan options to determine the best fit.

Please note: Central Washington University does not endorse or recommend specific lenders. The Financial Aid Office offers lender information as a resource only and does not receive compensation from any lender listed. The lenders linked below represent options that CWU students have used in the past, but we encourage all borrowers to research and compare lenders carefully before applying.

CWU Private Education Loan Policies

The CWU Financial Aid Office reserves the right to refuse certification of a private educational loan if it is determined the student is not making adequate progress toward the completion of a degree. Private education loan recipients must meet institutional Satisfactory Academic Progress (SAP) standards and cannot be academically suspended.

CWU private education loan policies may be appealed by completing the Satisfactory Academic Progress appeal process. Approved appeals may include mandatory contractual performance standards.

Review CWU's Student Loan Code of Conduct

Choosing a Private Lender

Private education loans can help cover remaining college costs, but it's important to borrow wisely. These loans are credit-based, meaning the interest rate and fees you receive depend on your credit score and, if applicable, the credit score of your co-signer.

Even if you qualify on your own, applying with a creditworthy co-signer often results in a better interest rate. Always read the fine print carefully and compare rates, fees, and repayment terms before accepting any offer. Some lenders charge high fees or capitalize interest frequently, which can significantly increase the total cost of your loan—even if the advertised interest rate seems low.

Determining How Much You Can Borrow

Private loans can be used to cover your unmet Cost of Attendance (COA), but CWU can only certify an amount up to: 

COA – Other Aid = Maximum Private Loan Eligibility

“Other Aid” includes:

  • Federal and State Grants
  • Scholarships and Waivers
  • Federal Student Loans

Example:

  • Annual COA for In-State Undergraduate: $26,312
  • Total Aid Received (grants, loans, waivers): – $17,480
  • Maximum Private Loan Eligibility: $8,832

Note: Most lenders require a minimum loan amount (typically $1,000), and federal regulations require students to complete a Self-Certification form confirming their COA.

Questions to Ask Your Lender

When comparing lenders, be sure to ask: 

  • What is the interest rate and is it fixed or variable?
  • Are there loan fees, and how much are they?
  • How often is interest capitalized (monthly, quarterly, annually)?
  • Are there prepayment penalties?
  • What are the repayment terms and deferment options?
Understanding the full cost of borrowing—including how often interest is added to the principal—can help you avoid surprises later.

Steps to Secure a Private Loan at CWU

Use ELMSelect to view a randomized list of private lenders used by CWU students in the past three years. Or, use Credible to compare loan options across multiple lenders.

  • Apply online with the lender of your choice.
  • Once approved, the lender will send a certification request to CWU. 
  • Watch your MyCWU email for updates and requests from Financial Aid.
  • After certification, allow 2–3 weeks for funds to be disbursed to your student account.

Loan Forgiveness and Cancellation

You may qualify to have part, or even all, of your federal student loans forgiven. Programs are available for teachers, public service employees, and other qualifying careers.

Learn more about your options

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