How to Shop for Private College Loans

When shopping for private college loans, while it's tempting to choose one based on interest rates alone, it's best to compare them using the Annual Percentage Rate (APR). Unlike basic interest rates, which may not represent the true cost of the loan, the APR takes into account all associated loan costs such as finance charges and loan fees (except penalty charges such as late payment fees). The formula used for calculating the APR also takes into account deferment periods and repayment terms. Each of these factors can have a significant impact on the cost of a loan. The APR adjusts for each of these items, illustrating the true cost of borrowing for your education over the entire life of the loan.

Additionally, since most lenders don't tell you what your actual interest rate will be until after you submit your application and after they evaluate your credit history, APR examples help you understand the lowest and highest interest rates actually available. This gives you a good idea of what you can expect to pay under those two scenarios. Like most consumers, you can expect to receive a rate somewhere between the lowest and highest rates advertised. These examples also identify the index used and the published rate for that index.

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How College Loan Interest Rates are Established

Private college loans have variable interest rates based on either the Prime or LIBOR (London Interbank Offered Rate) index. What does this mean?

First, the interest rates on these loans fluctuate – rise or fall – in line with their relative index, Prime or LIBOR. As rates change, your monthly college loan payment will increase or decrease accordingly. To understand the frequency at which your interest rate is adjusted (i.e., monthly or quarterly), review your loan documents.

Secondly, it's important to understand that the Prime or LIBOR rate is not all that matters. Don't focus solely on the index because the interest rate you will pay on your college loan is the value of the index plus a margin. For example:

LIBOR (%) + Margin (%) = Interest Rate (%)

Since private college loans are credit-based, the range for the margin varies. Individuals with an excellent credit history will generally receive a lower margin, resulting in a lower interest rate than those with less-than-perfect credit.

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How College Loan Interest Rates are Calculated

The amount of interest charged on college loans is calculated as simple daily interest. Simply put, the outstanding principal balance is multiplied by the interest rate and divided by 365 days to calculate one day's interest amount. So, if you have a $10,000 loan, with a 7.00% interest rate, the formula would be $10,000 x 0.07/365 and the amount of interest that accumulates for one day would be $1.92.

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College Loan Interest Rates

Shopping for a private college loan can seem daunting. Chances are you want to find the most competitive loan out there but you feel overwhelmed by the financial jargon. This is normal and you can rest assured that Citi is here to help you by providing you the information you need to evaluate your options.

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Private College Loans

Private college loans are a good way to provide you with the extra help you need to afford school when you've exhausted all low-cost funding options, including all financial aid and savings. Private college loans are designed to cover up to the full cost of your education, including unexpected costs such as additional tuition, fees, books, housing, and other costs not covered by your financial aid package or federal loans.

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Giving other people access

Giving other people access to your student finance account Sometimes
you might find it useful to let another person - for example, a parent or someone from your college - manage your student finance account or make enquiries on your behalf. Find out how this works and what you need to do.
Different levels of access
Student Finance England and the Student Loans Company are bound by the Data Protection Act, meaning that they can’t discuss details of your account with anyone else unless you give your permission.

If you want someone else to have access to your account, you can give permission on one of two levels. You can either:

•allow them to get information about your account, by providing 'consent to share'
•allow them to make changes to your account, by giving them 'power of attorney'

Allowing someone else to get information about your account
By giving 'consent to share', you authorise Student Finance England and the Student Loans Company to provide information about your account (with the exception of your bank details) to a person nominated by you.

To give 'consent to share', write to Student Finance England:

•quoting your Customer Reference Number
•providing the full name, address (including postcode) and date of birth of the person you’re nominating, and stating their relationship to you
•giving a password for them to use when they contact Student Finance England on your behalf

Student Finance England or the Student Loans Company will check these details before they release any information.


Contact Student Finance EnglandAllowing someone else to make changes to your account
By granting a nominated person 'power of attorney', you give Student Finance England and the Student Loans Company the right to release to them information relating to your account, and to update your details.

To grant a person power of attorney, you need to fill in a form giving their name, the specific period for which they can act on your behalf, and the specific tasks that they can perform. Contact Student Finance England for further information.

The person holding power of attorney will need to have their details checked before any information is released.

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Your student finance account

Your student finance account: passwords and Customer Reference Numbers
To access your secure student finance account, you’ll need your Customer Reference Number, password and secret answer. Signing in using these details means you’ll only see data that’s relevant to you – and that your personal details are protected. Make sure you keep all your login details in a place you can find them.
Getting in touch with Student Finance England
When you apply for student finance, you’ll be issued with:

•a Customer Reference Number (formerly known as an 'ART ID')
•a password and secret answer
You’ll need these details when you log in to your online student finance account or contact Student Finance England over the phone.
Keep your email details up to date
Student Finance England will send new passwords and secret answers to the email address they have for you.

If you change your email address, you should update these details online.

Just log in to your account and select ‘Update my profile’.

Log in to your student finance accountUsing your Customer Reference Number
Your Customer Reference Number is a unique, eleven-digit number used to identify your personal student finance account.
How do you get a Customer Reference Number?
You get a Customer Reference Number when you make your first application for student finance:

•if you apply online, you get your Customer Reference Number when you first register your details
•if you submit a paper application, you will get your Customer Reference Number by post
What happens if you lose your Customer Reference Number?
Your Customer Reference Number will be printed on all correspondence from Student Finance England.

You can also get your Customer Reference Number sent to you by email - see 'Find out your login details'.

Find out your login details Opens new windowUsing Student Finance England’s automated telephone service
You can also use your Customer Reference Number to get information about your account through Student Finance England’s automated telephone service.

Contact Student Finance England
Using your password and secret answer
Customer Reference Numbers, passwords and secret answers are case-sensitive
How do you get a password and secret answer?
If you register to apply for student finance online, you will be asked to choose a password and secret answer.

If you apply for student finance on paper, a password and secret answer will be automatically generated and sent to you. When you log in to your online student finance account for the first time, you will be prompted to change these to something more memorable.

Passwords and secret answers are case-sensitive:

•passwords must be 8-16 characters long and should contain at least one number
•passwords are blocked from containing easily guessed words – such as your username or words like ‘password1’
•secret answers must be 4-16 characters long and can be all letters, all numbers or a mixture of both

Changing your password and secret answer
You can change your password and secret answer at any time by logging in to your online account.

Log in to your student finance accountYou can reset your password or secret answer online – there’s no need to call Student Finance England
Resetting your password and secret answer
If you need to reset your password or secret answer (for example because you forget them or are ‘locked out’ of your account), see ‘Find out your login details’ below and follow the instructions. You will need your Customer Reference Number and your email address.

Student Finance England will send you an email with a new automatically generated password and secret answer. You can use these to log in to your account. Again, you’ll then be asked to change them to something you can easily remember.


Find out your login details Opens new windowPassword resets - problems with hotmail accounts
If you try to reset your student finance online account password, and have a Hotmail, Live or MSN email account, you may not receive a password reset email.

Student Finance England has been working with MSN to fix this problem and in most cases it has been resolved.

But if you don't get a password reset email, contact Student Finance England and it will investigate.

Contact Student Finance England
Online security: beware of bogus emails
Student Finance England will never email you asking you to confirm your login or user details.

If you get an email asking you to follow a link to the Student Finance England website to confirm your account details, you should forward it to:

then delete it.

This kind of fraudulent email is known as ‘phishing’, and will take you to a fake website.

Make sure you’re logging into the genuine site by typing direct.gov.uk/studentfinance into your browser.

By forwarding the email, you can help Student Finance England to protect you and others who may be affected.

But please note: Student Finance England cannot answer any specific questions about your account on this email address. If you have a query about any other email or letter you have received, you should log in to your account or call Student Finance England.

Online security - report a suspicious email to Student Finance England Opens new windowUse your login details for the Student Loan Repayment website
When you finish studying, you can use the Student Loan Repayment website to keep track of what you pay back. You’ll use the same Customer Reference Number, password and secret answer that you use now.

You’ll probably find that you can already log in to the Student Loan Repayment website – even if you are still studying.

Log in to the student loan repayment websiteGiving other people access to your student finance account
Sometimes you might find it useful to let another person - for example, a parent or someone from your college - manage your student finance account or make enquiries on your behalf. See 'Giving other people access to your student finance account'.


Giving other people access to your student finance accountNeed more help with student finance online services?
If you need more help with using the online application, see ‘Help with using student finance online services’.

If you can’t solve your login problem online, you can also contact Student Finance England’s customer services team. You’ll need to answer some security questions when you get through.

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Education and learning

Submitting evidence to support a student finance application
When you apply for student finance, you’ll also need to send in some evidence – for example, to prove your identity. Depending on the type of finance you apply for, you and your parent(s) or partner may also need to submit some other evidence. Find out what to provide, why, and how to submit it below.
Why you have to submit evidence
Your application can’t be processed until you (and your parents or partner) send in all the evidence you’re asked for
Proving your identity
If you’re applying for student finance for the first time, you’ll need to submit evidence of your identity. Student Finance England uses this evidence to check whether you’re eligible for finance – and to make sure that loans and grants only go to genuine applicants.

Proving household income
If you apply for finance that takes your income into account ('means-tested' or 'income-assessed' finance), as a student you’ll be asked to estimate your income for the academic year. Student Finance England may ask you for evidence of this income at the end of the year.

If your parent(s) or partner are supporting your application for 'income-assessed' finance, they’ll need to submit evidence of your household income. For the academic year 2010/11, they should supply evidence for the 'prior tax year' 2008-09 (6 April 2008 – 5 April 2009).

Student Finance England use the 'prior tax year' as this will be the last completed tax year before the first date from which you could apply for student finance.

The evidence should match the amounts given on your application.

Student Finance England use this evidence about your household income to work out how much financial support you’ll get. To find out more, see ‘Applying for finance: income assessment for full-time students’.
Applying for finance: income assessment for full-time students

Which evidence items will you need to submit?
You’ll find out which types of evidence you need to supply when you complete your application – either online or on paper.

Or, to view a complete list of evidence items you can submit, follow the links below.

Evidence items that students submitEvidence items that parents and partners submitIf you are continuing your course
If you’re a continuing student, you will need to provide information each year you apply for finance, but won’t need to provide new evidence - unless your circumstances change.

Changes to your circumstances could include:

•changes to your marital status

•if you now have dependent children or are taking care of a dependent adult

•if you think your household income will be at least 15 per cent lower than in the previous year

•if one of your parents or your partner dies, leaves the family home or remarries
Student finance: if your course, income or family circumstances change

What to do with your evidence
If you apply online: full-time students
After you submit your application online, you’ll see an 'Evidence' screen. This allows you to select the evidence items you’ll send in.

The online application lets you print a 'cover letter' - this automatically lists all the evidence items you’ve selected.

Register, login and apply online for student financeIf you apply on paper: full-time and part-time students
If you apply on paper, you should include all your evidence at the same time you post your application form.

Student finance forms and guides 2010/11Where to send your evidence
If you’re a new student - or you started your course in 2009/10 or later - you should send all your evidence to Student Finance England along with your Customer Reference Number.

Send your evidence to:

Student Finance England
PO Box 210
Darlington
DL1 9HJ

If you started your course in 2008/09 or earlier, you should send your evidence either to your local authority or to Student Finance England - depending on where you live. See 'Contact your local authority (student finance applications)' to find out where you need to send your form.

Contact Student Finance EnglandContact your local authority (student finance applications) Opens new window
Evidence reminder email
You will be sent an email reminding you to send in evidence. These emails are automatically generated, so please ignore them if you’ve already sent in your evidence.
Full-time students: getting updates on your evidence online
Check what’s happening with your application and evidence by:

1.Logging in to your online account
2.Clicking on the academic year you applied for (for example ‘2010/11’) in the ‘My account’ screen
3.Clicking on ‘Evidence’ to get to the ‘Evidence’ screen
If you applied on paper, you’ll be sent a Customer Reference Number, password and secret answer that you can also use to access your details online.

The ‘Evidence’ screen is updated once your evidence has been processed by Student Finance England or your local authority.

Register, login and apply online for student financeGetting your evidence back
When Student Finance England get your evidence, they will sort, scan and match it to your application. Student Finance England will return your evidence to you once they have processed your application fully.

Please be aware that this can take up to four weeks during their busiest processing periods - typically between mid August and mid October.
Receiving your finance offer
You’ll also be sent a letter showing the amount of financial support you’ll receive within six weeks of submitting your application and evidence.

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how and when to apply

The quickest and easiest way to apply for finance if you’re studying full time is online. To apply online you need to set up a student finance account, complete your application online and send in any supporting evidence.
Full-time students: apply for student finance
Full-time students can apply for student loans, grants and bursaries by completing an application form online for the 2010/11 academic year.

If you can’t apply online contact Student Finance England who’ll provide you with a paper application form.

Students will be able to apply online for 2011/12 in early 2011.

Register, login and apply online for student financeContact Student Finance EnglandFull-time applications: what you need to doStudent finance service updates


Get the latest information on student finance services

Service updatesRegister with Student Finance England
New, full-time applicants need to register with Student Finance England before applying online.

When you register, you’ll get a Customer Reference Number (formerly known as an ‘ART ID’).

If you’ve already registered, or you’ve begun an application before - even if you didn’t complete it - you will already have a Customer Reference Number or ART ID.

If you apply on paper, you won’t need to register for a student finance account. You’ll be sent a Customer Reference Number so you can access your student finance account and check on the status of your application.

Register, login and apply online for student financeAlready registered? Find out your Customer Reference Number or security details Opens new windowAccess your student finance account
Once you’ve registered, use your Customer Reference Number and security details to log in to your student finance account and apply online.

Once you've completed your online application, you'll need to sign and return an ‘online declaration' form.

You can download a copy by logging into your student finance account. Once you've logged in, select 'view correspondence' to get a personalised online declaration.

Your student finance account: passwords and Customer Reference NumbersSupplying evidence
Whether you’re applying online or on paper, don’t forget to provide the documents you’re asked to supply as evidence.

If you don't, your application won’t be processed and your payment could be delayed.

Submitting evidence to support a student finance applicationDownload evidence needed for student finance applications for 2010/11 (PDF, 137K)Provide your National Insurance Number
You must provide your National Insurance Number as soon as possible - preferably when you complete your application. Your payments won’t be released until you do.

If you don’t have a National Insurance Number, your first payment may still be released - if you can prove that you are actively trying to get one.

If you have completed an application without your National Insurance Number, you can add it by logging into your student finance account and selecting ‘Update my profile’.

Login to your student finance accountChanging your application
If you've changed your course choice since you made your application for student finance, you must let Student Finance England know as soon as possible. This is to ensure that you receive the right amount of support, and that your Tuition Fee Loan is paid to the right university or college

Student finance: if your course, income or family circumstances changeHow your application is assessed
If you’ve applied for parts of the finance package that depend on household income, the information you (and your parents or partner) have supplied will be assessed to determine how much you get.

Applying for finance: income assessment for full-time studentsIncome assessment for full-time students: families with more than one studentWhen do you get your payments?
Get the latest on your payments

Login to your student finance account to:

•check your scheduled payments (under ‘View Payments’)
•see your Payment Schedule letter (under 'View Correspondence')
Login to your account Login to your student finance account Opens new window Once your application has been assessed, Student Finance England will approve your payments. You’ll get a Payment Schedule Letter - take this to your university or college so they can confirm that you’re attending the course.

As soon as Student Finance England receives this confirmation and verifies your National Insurance Number, your payments will be released. Assuming you sent in a fully completed application on time - including all supporting evidence - payment should take between three and five working days to reach your bank account.

In general, grants and the Maintenance Loan are split into three payments over the year. Payments to help with tuition fees are paid directly to your university or college.

Part-time students
There’s a different application procedure for part-time courses (except for Initial Teacher Training courses that started in 2009/10 or earlier). Follow the relevant link below to find out more, and download a form

Finance for part-time students - applying for the first time Finance for part-time students - applying after your first yearAppealing against a decision on your application
If you think there has been a mistake in the decision on whether you’re entitled to student finance - or on how much you get - you can ask for it to be reviewed.

Student Finance England handles applications for new students starting a course from the 2009/10 academic year onwards. Download the booklet ‘how to appeal’ for guidance on appealing against a decision made by Student Finance England.

If you started in 2008/09 or earlier, contact your local authority to find out how to appeal.

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How much will university

How much will university or college cost? Tuition fees and other expenses
You’ll need to consider tuition fees, accommodation and living costs when you go to university or college. There’s financial support available to help you with these costs.
How much will your university or college course cost?
Your main costs will be tuition fees, accommodation and living expenses.

Costs will vary depending on where you study, so it’s worth doing some research on how much you’ll need to cover them - and on the help you’ll get through the government’s student finance package. Check with your university or college for more advice on living costs.
Tuition fees
Full-time courses
If you’re a new student (or a continuing student who started your course in or after September 2006) the maximum tuition fees you’ll be charged are £3,290 for the 2010/11 academic year. For the 2011/12 academic year the maximum tuition fees you can be charged will be £3,375.

Exactly what you’re charged depends on the university or college you attend, your course, and where in the UK you study. Check your university or college prospectus to find out the fees for your course.

You can get a Tuition Fee Loan to cover the full cost of your tuition fees. This is paid directly to your university or college. The amount you get does not depend on household income.

Part-time courses
There are no regulations stating how much universities or colleges can charge in tuition fees for most part-time courses.
Check with your university or college how much they charge. It’s also worth finding out how much the fees are likely to rise over the length of your course.
Accommodation and other living costs
Your costs will be higher if you live away from home, and higher again if you live away from home and study in London. Accommodation will be your biggest expense, but don’t forget about things like books, food, bills, and going out.
Adding up your expenses
Plan a student budget

Studying full time? Use the Calculator to plan a budget

Student Finance Calculator Student Finance Calculator It’s well worth taking the time to add up your expenses. Budgeting can help you plan your spending, so you won’t run out of cash half-way through term.

If you're a new student starting a full-time course in 2010/11 or 2011/12, you can use the Student Finance Calculator to work out a budget.

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How Student Finance

How Student Finance England works out if you’re eligible
The information on these pages doesn’t cover all circumstances, but it offers a general guide to the rules that are likely to apply if you normally live in England, are going to a UK university or college, and:

•you're studying for a higher education qualification - such as an ‘undergraduate’ degree, or
•you want to ‘top up’ a lower-level higher education qualification

Eligibility is based on two checks: one on personal eligibility and one on course and institution eligibility. These checks are carried out by Student Finance England when you apply - or by your local authority, if you started in the 2008/09 academic year or earlier.

Personal eligibility
Student Finance England (or your local authority) will look at your immigration status or nationality, and whether you meet certain residence conditions. When deciding whether you qualify for the Maintenance Loan, they will also consider your age.

Personal eligibility is tested once, at the start of your course - although it may need to be reviewed if, for example, you only have a temporary right to live in the UK.

Student finance: personal eligibilityCourse and institution eligibility
Student Finance England will also look at the qualification you’re studying for, and the university or college where you’re doing your course.

This is tested each academic year.

Student finance: course and institution eligibilityWhat if this information doesn’t apply to you?
Different rules will usually apply if:

•you normally live outside England
•you are doing your course outside the UK
•you are doing a postgraduate course (though you’ll qualify for elements of the student finance package if you’re doing a postgraduate course of Initial Teacher Training)

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Are you eligible

To qualify for financial help from the government, both you and your course need to meet some conditions – based on where you live, the type of course you’re doing and some other factors.

Your eligibility will be assessed when you apply - but if you’re a full-time student starting in 2010/11 or 2011/12, you can enter your details into the Student Finance Calculator for an idea of whether you’re likely to qualify.

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Eligibility for student finance

Student finance isn’t available to everyone - there are some conditions you need to meet. If you’re from England and studying in the UK this page provides a general guide to whether you’re likely to qualify.

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Student Finance Calculator

If you are from England and are thinking of going to college or university in academic year 2010/11 or 2011/12, this calculator will provide you with an estimate of the financial support you could receive.

The calculator gives an indication of what might be available for student loans and grants; as well as scholarships and bursaries from your place of study. The estimate is based on the information you give, so the more detail you can provide the more accurate the estimate will be.

Note that the estimate you receive is not an offer of support and does not guarantee your eligibility to receive student finance.
When you apply for finance, you will need to provide supporting evidence to help us make an accurate assessment. Student Finance England will tell you what evidence to send when you make your application.

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