Private Loan Options

For students and families that have exhausted other means of financial aid, private loans can be a helpful tool for financing their educational costs at Duke. Within the umbrella of these alternative loan programs are specific classifications of lender type: 

• Non-Profit Organizations 
• Banking Institutions
• Commercial Lenders

Non-Profit Organizations

While most borrowers are familiar with the Federal Student Aid program, there are additional non-profit entities that offer educational loan programs. These organizations are typically housed within state-sponsored agencies and facilitate borrowing programs for residents as well as students attending universities within their borders. Loan programs provided by state agencies may offer more competitive terms for their residents and eligible borrowers, and could be good options to consider for individuals looking to borrow outside of traditional, for-profit lenders. 

Loan programs sponsored by non-profit organizations differ vastly across programs and state agencies. To review terms and conditions of loan programs you may be eligible for, please refer to the link below: 

Click here to access an interactive map highlighting State Financial Aid Programs!

Banking Institutions 

Many banks and credit unions offer educational loans. Students and families looking for borrowing options connected with their existing financial accounts may find it more beneficial to review loan products offered by institutions they already bank and manage money through. Ease of access, integration into pre-existing financial management, and the potential for borrowing benefits such as interest rate reductions for current customers or account owners are among the most common factors borrowers may choose loan programs through a banking institution. 

A note about our list! The Private Loan Options list pulls lenders based on volume from the past three academic years, 2022-2025. A banking institution designed to serve a specific population or that is based in a smaller community may not be featured on the list, however Duke University will process loans from any lender. If you have questions about the certification process, please contact our office: personalfinance@duke.edu.

 

Commercial Lender

The final lender type falls under the category of Commercial Lender. While some of these organizations may offer additional financial services, Commercial Lenders primarily specialize in various loan products. Commercial Lenders may be a good option for students and families that will need to borrow up to the Cost of Attendance as most loan programs under this category will not have additional borrowing limits such as a designated lifetime or aggregate loan limit. Commercial Lenders may also be more likely to offer lending terms for more unique situations like past due balance loans and loans for students enrolled less than half-time. Finally, for individuals with very good to excellent credit, Commercial Lenders may be able to offer lower interest rates when compared to other lenders.

Another important factor when choosing a lender is to determine total borrowing costs, specifically when it comes to a loan’s interest rate. It is very unlikely that a private lender will charge an origination or processing fee on a loan, so receiving a competitive interest rate is one of the best ways a borrower can reduce expenses associated with their loan.

Most lenders will publish a range of interest rates that borrowers will get approved within. However, some lenders offer a much wider range of rates, making it more difficult to forecast exactly what the borrowing cost will look like until official terms are presented.  Interest rates offered by lenders who offer smaller interest rate ranges will not vary as much.  

Important Note: Borrowers are never required to accept a loan offer. 

Did You Know? Similar to the norms of applying for a mortgage, student and parent loan borrowers are allowed to apply with more than one lender and receive only one credit check if completed within a 2-4 week timeframe! If you plan on applying to 2-3 lenders, it may be beneficial to include a lender that offers a smaller range of interest rates and leverage the probability of receiving a more competitive interest rate. This can be a helpful strategy when it comes to comparing offers and trying to safeguard at least one option that keeps your borrowing costs lower.

Understanding the terms of repayment is a critical factor when it comes to identifying the best borrowing option and subsequent lender to work with.

Although there are many differences across loan programs as well as within the needs of each individual borrower, the following criteria should be considered when comparing lenders and the loans they offer:

• In-School Deferment: It is standard practice that a student loan is eligible for deferment so long as the borrower is enrolled at least half-time and is a degree-seeking student.
  • A deferment may or may not be available for loans made out to parents, so respective borrowers should check with their lender to see if an In-School Deferment is available for parent loan products while their child is enrolled at least half-time.
• In-School Payment Agreements: Many lenders will offer voluntary payment agreements to borrowers while they are in-school, typically at the benefit of a reduced interest rate or similar savings. There are several kinds of In-School Payment Agreements, the most common being Interest-Only Payments and Partial Fixed Payment.
  • IMPORTANT NOTE: Borrowers that agree to any In-School Payment Agreement should be aware that there are significant consequences for violating the terms and missing agreed upon payments, even under voluntary agreement programs. These consequences can include penalty fees, negative credit reporting, and even the cancellation of future disbursements.
• Pre-Payment Penalty: Looking to make payments towards your loan before you officially go into repayment? Most lenders will let you make voluntary payments towards your balance without penalty! Just remember that all payments get applied to outstanding interest first before any amount is applied to the principal balance.
• Grace Period: Nearly all private lenders will offer a transition time of six months when a student has dropped below half-time before repayment officially begins and a borrower is required to make monthly payments.
• Continuing Education/Re-Enrollment: If you think you might be going back to school after your time at Duke, check to see if your lender will grant additional times of In-School Deferment status as well as subsequent grace periods before resuming repayment.
• Repayment Timeline: Private lenders almost always offer repayment timelines in 5 year increments- 5, 10, 15, or 20-year pay-off schedules. Keep in mind, once a repayment timeframe is selected, it may not be possible to look at extending the timeline in the event a borrower is struggling to pay their loan off on time. As noted in a previous consideration, it is highly unlikely a lender will penalize for pre-payments or higher monthly payments; borrowers uncertain about their ability to pay on a shorter timeline may find more security in selecting a slightly longer schedule and making extra monthly payments whenever possible to avoid paying more interest than necessary without straining their larger finances.
  • If you come across a private lender that uses language around repayment other than a time-based schedule, such as “Income Based” or “Income Share Agreement” do your research and proceed with caution. Income Share Agreements and similar offerings from private lenders can end up costing borrowers significantly higher payments, with some equivalent costs exceeding a traditional loan borrowed at an interest rate of nearly 20%.
• Flexibilities During Financial Hardship: When faced with a financial hardship or extenuating circumstance that may impact your ability to make payments, what kinds of relief options and flexibilities will the lender offer? Short-term forbearances and deferments that typically range from 2-6 months are common offerings through private lenders.

 

 

 

 

US CITIZEN OR A NON-US CITIZEN WITH US CO-SIGNER

Undergraduate

Loans for undergraduate students in Trinity, Pratt, Health Informatics, ABSN and Allied Health Certificate programs

Graduate & Professional

Loans for Graduate & Professional students

Graduate Health Professions

Loans for students enrolled in the School of Medicine, Allied Health, or the Graduate Nursing program

Refinance & Consolidation 

Loans for student loan borrowers who are interested in consolidating or refinancing existing student loans

Parent

Loans for parents of undergraduate students

Bar Exam

Loans for Law school graduates who are preparing for the Bar Exam

Medical Residency

Loans for Medical school graduates who are working on their residency requirement

NON-US CITIZEN WITHOUT US CO-SIGNER

International Students

Loans for Graduate & Professional students enrolled in select academic programs who are not citizens of the US.

Note that the lenders included on the list have specific eligibility requirements and may only lend to students that meet certain criteria. Review each lender carefully to determine your eligibility in the respective programs.

Please use the link below to access the lender list on ELMSelect:

International Students

Before choosing a lender, there are several factors to consider that can directly impact your total borrowing experience, both while in school and throughout your time in repayment. As you compare borrowing options, consider the following:

• Originations Fees- Are there additional or upfront costs associated with borrowing?
• Interest Rates- What are the ranges of interest rates available? Is the interest rate fixed or variable?
• Borrowing Limits- Is there a cap on how much you can borrow each term and school year? What about an aggregate or lifetime limit through the lender?
• Repayment Terms- How long do you have to pay your loan back? Can you change your term at any point in repayment or only at the time of application?

As interest rates may fluctuate, influencing the pricing of a loan, it may be advantageous for borrowers to apply for student loans as soon as they can to possibly secure favorable interest rates as determined by the lender.

Code of Conduct

A. CONFLICTS OF INTEREST

All employees involved in financial aid and student lending are subject to a rigorous conflict-of-interest policy. 

B. REVENUE-SHARING ARRANGEMENT

Duke will not enter into any revenue-sharing arrangement with any lender.

C. GIFTS

No officer or employee of the University who is employed in the Financial Aid Office of the University or who otherwise has responsibilities with respect to education loans, or agent who has responsibilities with respect to education loans, shall solicit or accept any gift from a lender, guarantor, or servicer of education loans.

D. CONSULTING ARRANGEMENTS

An officer or employee of the University who is employed in the Financial Aid Office of the University or who otherwise has responsibilities with respect to education loans, or agent who has responsibilities with respect to education loans, shall not accept from any lender or affiliate of any lender any fee, payment, or other financial benefit (including the opportunity to purchase stock) as compensation for any type of consulting arrangement or other contract to provide services to a lender or on behalf of a lender relating to education loans.

E. CONTRACTING ARRANGEMENTS

No employee or other agent of a lending institution may staff the University financial aid offices at any time.  The University shall ensure that no employee or other representative of a lending institution is ever identified to students or prospective students of the University or their parents as employee or agent of the University. 

The foregoing prohibitions notwithstanding, if the university believes that it would benefit students, the University may allow representatives of lenders to conduct informational sessions, such as exit interview and presentations on loan payment and loan consolidation options, so long as: (a) student attendance is voluntary; (b) a University representative explains that other lenders may provide similar services; (c) the affiliation of the lender representative is disclosed at the start of the presentation; (d) the lender representative does not promote the products or services of any lender, and (e) the University takes reasonable steps to ensure compliance with the requirements of this paragraph.

In the event that the University permits a lender to conduct information sessions or exit interviews as set forth above, the University must retain control of any interview or presentation offered by lenders.  Control may be evidenced by (a) a University employee attending such interview or presentation; or (b) the University recording or videotaping the interview or presentation.

F. DIRECTING BORROWERS TO PARTICULAR LENDERS

Duke will not, for any first-time borrower, assign, through award packaging or other methods, the borrower’s loan to a particular lender; or refuse to certify, or delay certification of, any loan based on the borrower’s selection of a particular lender or guaranty agency.

G. OFFERS OF FUNDS FOR PRIVATE LOANS

Duke will not request or accept from any lender any offer of funds to be used for private education loans to students in exchange for the institution providing concessions or promises regarding providing the lender with respect to:

• a specified number of private loans;
• a specified loan volume of such loans; or
• a preferred lender arrangement for such loans; or
• private education loans, including funds for an opportunity pool loan.

H. STAFFING ASSISTANCE

Duke will not request or accept from any lender any assistance with call center or financial aid office staffing.

I. ADVISORY BOARD COMPENSATION

Any employee who is employed in the Financial Aid Office, or who otherwise has responsibilities with respect to education loans or other student financial aid of the University, and who serves on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors, shall be prohibited from receiving anything of value from the lender, guarantor, or group of lenders or guarantors, except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory board, commission, or group.

Definitions

A. CONFLICT OF INTEREST

A conflict of interest exists when an employee’s financial interests or other opportunities for personal benefit may compromise, or reasonably appear to compromise, the independence of judgment with which the employee performs his/her responsibilities at Duke.

B. GIFT

A gift is any gratuity, favor, discount, entertainment, hospitality, loan, or other item having a monetary value of more than a de minimus amount.

• The term includes a gift of services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred;
  • The terms does not include:
  • Standard materials, activities, or programs on issues related to a loan, default aversion, default prevention, or financial literacy, such as a brochure, a workshop, or training.
  • Training or informational material furnished to the University as an integral part of a training session that is designed to improve the service of a lender, guarantor, or servicer of educational loans to the University, if such training contributes to the professional development of the University’s employees.
  • Favorable terms, conditions, and borrower benefits on an education loan provided to a student employed by the University or an employee who is the parent of a student if such terms, conditions, or benefits are comparable to those provided to all students of the University and are not provided because of the student’s or parent’s employment with the University.
  • Entrance and exit counseling services provided to borrowers to meet the University’s responsibilities for entrance and exit counseling under federal law, so long as the University’s employees are in control of the counseling, and such counseling does not promote the products or services of any specific lender.
  • Philanthropic contributions to an institution from a lender, servicer, or guarantor of education loans that are unrelated to education loans or any contribution from any lender, guarantor, or servicer that is not made in exchange for any advantage related to education loans.
  • State education grants, scholarships, or financial aid funds administered by or on behalf of a State.

C. OPPORTUNITY POOL LOAN

A private education loan made by a lender to a student attending the institution or the family member of such a student that involves a payment, directly or indirectly, by such institution of points, premiums, additional interest, or financial support to such lender for the purpose of such lender extending credit to the student or family.

D. REVENUE SHARING AGREEMENT

A revenue sharing arrangement is an arrangement between Duke and a lender under which:

• A lender providers or issues a FFEL Program loan or private education loan to students attending Duke or to the families of such students; and
• Duke recommends the lender or the loan products of the lender and in exchange, the lender pays a fee or provides other material benefits, including revenue or profit sharing to Duke.

E. STAFFING ASSISTANCE

Staffing Assistance is as defined in the federal Truth in Lending Act, 15 USCA §1631 et seq.  Nothing in Duke’s Code of Conduct shall be construed as prohibiting Duke from requesting or accepting assistance from a lender related to:

• Professional development training for financial aid administrators;
• Providing educational counseling materials, financial literacy materials, or debt management materials borrowers, provided that such materials disclose to borrowers the identification of any lender that assisted in preparing or providing such materials; or
• Staffing services on a short-term, nonrecurring basis to assist Duke with financial aid-related functions during emergencies, including State-declared or Federally declared natural disasters, Federally declared national disasters, and other localized disasters and emergencies identified by the Secretary