What is a Private Loan?

A private loan is money you borrow from a private lender that you have to pay back with interest. We encourage students to apply for grants and scholarships before taking out a student loan. If you have to take out a loan, then we encourage you to learn more about federal direct loans before considering a private loan. A loan is a serious and long-term obligation.

Private loans are determined based on credit. They accrue interest and typically have higher interest rates than federal direct loans. Private loans also do not generally offer the same repayment protections that federal direct loans do.

Students may establish a private loan through any banking institution of their choice. Disbursements are typically made via check.

Code of Conduct for Private Loans

American River College is prohibited from engaging in any business arrangement that is a conflict of interest between the college and private lenders in accordance with the Truth in Lending Act (15 U.S.C 1638(e)). American River College does not:

  • Receive any revenue sharing with any lender
  • Receive gifts from lenders, guarantors, or loan services
  • Have contracting arrangements providing financial benefit from any lender or affiliate of a lender
  • Direct prospective student borrowers to a particular lender
  • Maintain a preferred lender list
  • Delay or refuse loan certifications based upon choice of private lender
  • Offer funds for private loans
  • Receive any compensation for members of the college that may belong to the advisory board of any lender