What is a Direct-to-Consumer Private Student Loan

A direct-to-consumer private student loan is a form of student financing which does not need to be certified by the college or university in able for an individual to avail student funds from private lenders. With this type of loan, all transactions are exclusively negotiated between the lending company and the student-borrower.

Benefits of the Loan

A direct-to-consumer private student loan offers many advantages to undergraduate or graduate students to cover their course program expenses. Some of the benefits they can reap from this loan are:

  • the student can freely decide and pick which lender to choose without the approval of the school he is enrolled in
  • the loan application and approval process is easier and quicker
  • unlike government-guaranteed educational loans which disbursement schedules are set periodically, the student can request for funding anytime the need arises
  • funds can be used to offset school related expenditures that are not covered by the federal government student loans

Eligibility Requirements

Compared to the federal student financing programs wherein the financial need of the applicant is highly considered, the direct-to-consumer private student loans do not look into the borrower's economic deficiency in able to get approved for a loan. Other basic requirements are:

  • a co-signer with positive credit history
  • creditworthiness of the borrower
  • social security number
  • borrower's personal information

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