Private student loans are consumer loans that are designed to supplement financial aid and cannot, when combined with other aid, exceed the cost of attendance established by the college. A student must apply with a bank or lending entity of their choice and have their application credit-approved before they are eligible to borrow this type of loan. In most cases, a student will be awarded a better interest rate if they have a co-signer for their loan. These loans are NOT backed by the Federal Government and should only be utilized as a last resource to fund your education.