Non Certified Private Student Loans

Q: I am aware that federal student loans are the best kind of loans to get, however sometimes the amounts received from FAFSA are very little. I need a large private student loan to cover the rest of my college expenses, and was told to look into non certified private student loans, what are these?

A: Federal student loans should always be exhausted before considering a private student loan. However, sometimes students who have exhausted their federal financial aid options for college are still in need of more money for college expenses.

Non certified private student loans may be offered by some lenders, as a means to loan the borrower “more money” without it having a negative impact on the borrowers need-based financial aid. Since any amount of money borrowed in the form of a private student loan that exceeds the difference between cost of attendance and the federal financial aid received is treated like an additional financial resource for college, it could have an impact of the amount of federal financial aid received.

Non certified private student loans basically take advantage of a loophole in the system, by loaning the borrower money and not informing the school. Most private student loan lenders will lend a borrower amounts that exceed the difference between cost of attendance and the federal financial aid received (in a standard private student loans and not non certified private student loans), however it may have an impact on the need-based federal financial aid the student receives.
For more on the private student loans for college, other readers have found these articles useful: No Credit Check Student Loans or Student Loans For Living Expenses.