Many lenders offer private educational loans to law students. These loans differ from federal loans in several significant ways:
- Private loans are not federally guaranteed.
- Private loan interest rates and fees are not subsidized.
- They are only issued to students who have an "absence of bad credit."
- Credit worthy co-signers may be required if the student has bad credit.
- Since there is no guarantee or subsidization, they are usually more expensive.
- Private loans may have a longer repayment period.
- Private loans are not eligible for deferments, but lenders may offer forbearance.
- Private loans are not forgiven in the event of death or disability.
- Private loans may not be consolidated with federal loans.
- Some Private loans may be used for less than half-time study.
