Private Loans and Preferred Lender List

When evaluating your options for financing your education, there are many options and factors to consider. A general rule of thumb is that you apply for federal aid first and then evaluate the terms and any funding gap. Often students prefer to take federal loans first and then seek private loans to fund the remainder, usually due to federal loans' qualification for potential public service loan forgiveness among other features.

When comparing private lending options, the number of options and features can vary and it will be important to look at several factors to determine the best option for you. This page is designed to assist you with that evaluation.

Prior to researching your options for preferred lenders, below are a few helpful notes for you:
  • Pay attention to fees associated with any loan product. Origination fees are costs that are added to the loan amount but deducted from the proceeds paid out to the borrower so they add to the total cost of the loan. Many private lenders do not charge origination fees which can be very beneficial to total cost of borrowing over the length of the loan.
  • Most lenders publish a range of rates that borrowers may expect. Familiarizing yourself with the potential range of rates will be helpful in planning.
  • Most lenders will offer in-school deferment but there may be a caveat on maintaining a certain level of enrollment, such as more than half-time, to qualify.
  • In-school payment may be offered by some lenders which could qualify you for a reduced interest rate. Be sure to check what the consequences are for any missed payments while in school before electing this option.
  • Grace periods can vary depending on the loan offering.
  • Repayment periods may vary depending on the loan offering.
  • Some lenders have specific options for co-signer release.

KCU Preferred Lender List

The KCU Preferred Lender List is your KCU resource to assist in your private lender research process.

KCU created a preferred lender list in order to assist you with researching the borrowing option that best suits your unique financial needs. This list allows you to compare these different lenders' products through one, easy to use platform: FastChoice.

This list was created and is reviewed annually through a thorough and objective process directed by the Student Financial Services Department and included a request for information from multiple private lending institutions.The selection process includes the following key criteria:
  • Competitive terms: Interest rates, fees, repayment options, co-signer release options, grace periods, deferment options and other borrower benefits.
  • Customer service: Availability,  responsiveness and quality of borrower support.
  • Regulatory compliance: Compliance with all applicable federal and state laws and regulations. No lender receives preferential treatment for inclusion on the KCU Preferred Lender List.
  • Financial stability: Demonstrated financial strength and capacity to provide long-term loan servicing and support for borrowers.
  • Loan product offerings: Loan options designed to meet the need of KCU students pursuing health professions education.

Please note that the KCU Preferred Lender List is not an exhaustive list of all available lenders and it is not an official recommendation by KCU for any lender over any other. Rather, it is a list of lenders with compelling private loan offerings that we wish to enable you to compare in a fast, easy and transparent way. KCU recommends that you research many lenders to find the product that is right for you. Please see the KCU Financial Aid Code of Conduct for more information about the standards under which we operate.

As always, the Student Financial Services team is ready to assist you with any questions you may have during this process.