Whats the difference between certified and uncertified private student loans?
Certified private student loan amounts are determined by the “unmet need” amount indicated in college award letters. Loan money is paid directly to schools, which are required to confirm enrollment of student borrowers. As a result, these loans usually offer lower variable APRs. The loan money covers up to 100% of tuition, fees, books, room and board. Any money left over after paying these costs is paid to the student. Uncertified private student loans are awarded based on credit history and an institution’s lending limits. As a result, they usually offer higher variable APRs. The loan money is paid directly to the student borrower and may be used to pay a variety of college-related expenses.
