Definitions for "Private loans"
(see Alternative Loans) Promissory Note ^Submenu The promissory note is a legal binding contract between the borrower and the lender. The promissory note states the terms and conditions of the loan, including repayment schedule, interest rate, deferment policy, and cancellations. The borrower should keep this document until the loan has been repaid.
Loans that are not sponsored by the federal government. Private loans, funded by private companies, are not subject to the same restrictions as federal loans. Astrive student loans are private loans.
Private loans, also known as alternative loans or Non-Federal student loans, help bridge the gap between the actual cost of education and the limited amount the federal government allows students and parents to borrow under the federal FFELP and direct loan programs. Private lenders offer private loans and there are no federal forms to complete.