Financial Aid

Private Credit-Based Loans & Credible

A credit-based loan is a loan that’s based on a student’s (or co-borrower’s) credit score and history. Lenders use one’s credit score to determine their interest rate, credit limit, and the term of the loan. Our office urges students to compare credit-based loan information and terms carefully to determine the best fit for your particular circumstances, and we suggest using Credible.com to do so.

Credible is a free online loan selection tool that allows you to compare prequalified rates*, terms, and eligibility rules side-be-side in just a few minutes.

You can filter your search to sort on key factors most important to you.
With your approval, Credible will pull a soft credit inquiry, which will not affect your credit score but will enable you to compare interest rates you qualify for at multiple lenders. Requesting pre qualified rates on Credible is free and doesn’t affect your credit score.
Applying for or closing a loan will involve a hard credit pull that impacts your credit score and closing a loan will result in costs to you.
Credible assures users that it is secured with 256-bit encryption technology.
The Credible privacy policy can be found here.
You are not required to borrow from any of the lenders listed in the Credible marketplace. Only you and your family can decide which loan program is best for you. You are not required to borrow from any of the lenders suggested by Credible and there is no penalty for selecting a different lender, if you prefer

How to Apply for a Credit-Based Loan

Research Your Student Loan Options

Before applying for a credit-based student loan, it’s important to do your research on the private student loan landscape and explore all of the options available to you. Visit Credible to compare lenders.
Understand How to Apply

Once you select a lender, you will need to complete an application. Most private student loan applications can be submitted online and take an average of 15 minutes to complete.
Get an Approval Decision

After reviewing the disclosure and submitting your application, the approval process begins. Some lenders use a manual review process that could take a few days while others produce an instant decision. During the approval process, the lender evaluates your credit history, among other criteria, to determine whether to approve you for the loan.
Accept and Sign Your Loan Terms

Once approved, the next step is to review and accept the terms of the loan. After you finalize the terms of your loan, you receive a second required disclosure, this time with specific information regarding rates, fees, and other terms of the loan. This disclosure shows you all of the information about your specific loan and how much it will cost. After you accept the terms of the loan, you’ll sign the remaining loan documents to continue. Most lenders will let you sign your loan documents electronically so you can skip printing and mailing.
Wait for School Certification

During certification, the lender will send your loan details to BU to confirm several things including your enrollment status (half-time or full-time), your anticipated graduation date, and your requested loan amount. The loan cannot exceed the cost of attendance.

BU can certify the loan as is, certify the loan with changes, or not certify the loan at all. When certifying a loan with changes, BU can lower the amount of the loan if it exceeds the maximum cost of attendance (minus other aid), or could adjust things like your expected graduation date.

If BU makes changes to the loan, your lender will often need to generate new disclosures to make sure you have the latest information. You may need to accept the new disclosure, so keep an eye out for communications from your lender.
Disbursement of Funds

Once your loan is certified by BU, your loan will be scheduled for disbursement. Student loan disbursement is how BU gets the funds you applied for to your student account. Credit-based student loans are typically sent straight to BU; they are not sent directly to you (the student).

In terms of how long it takes to get your student loan, BU sets the disbursement date, which is typically on the first day of class each semester. It’s best not to wait too long to apply to avoid any unexpected delays.

Typically, your private student loan lender will inform you when your private student loan is disbursed, and will be sent to your school in 2 disbursements if you applied to cover more than one term.

Additional Private Loan Information

Private Loan Self-Certification

All applicants for private educational loans are required to complete a self-certification form. Prior to completing a private loan application, download, print, and complete the Private Education Loan Applicant Self-Certification form as instructed. You will also be provided with a copy of this form from your lender as part of their application process. Only one self-certification form is required per loan application.

To complete this form, you will need information about your “cost of attendance for the period of enrollment covered by the loan” and information about your “estimated financial assistance” for that same period.

*Prequalified Rates

Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Rates and terms are subject to change without notice. Rates from Lenders may differ from prequalified rates due to factors which may include, but are not limited to:

changes in your personal credit circumstances
additional information in your hard credit pull and/or additional information you provide (or are unable to provide) to the Lender during the underwriting process
changes in APRs (e.g., an increase in the rate index between the time of prequalification and the time of application or loan closing. (Or, if the loan option is a variable rate loan, then the interest rate index used to set the APR is subject to increases or decreases at any time). Lenders reserve the right to change or withdraw the prequalified rates at any time.

Loan Disclaimer

You are not required to borrow from any of the lenders listed in the Credible marketplace or in any University materials. Only you can decide which loan program is best for you. You may choose to borrow from any lender without penalty. We urge you to compare credit-based loan information and terms carefully to determine the best fit for your particular circumstances.

International Student Aid

Consider the FAFSA – If you qualify as a citizen, permanent resident of the U.S., or eligible non-citizen, and are able to access U.S. Federal Student Loans, which offer very favorable terms, you should consider them first. Start by completing the FAFSA (Free Application for Federal Student Aid).
Home-Country Loans – If you do not qualify for U.S. Federal Student Aid, we advise that you check with your home country to see if loans to study in the U.S. are available.
Having a Co-Borrower – Many U.S. lenders offer credit-based educational loans to international students if they apply with a credit-worthy U.S. citizen, permanent resident, or eligible non-citizen co-borrower. If you are able to secure a qualified co-borrower, we urge you to do so and consider loans of this type, because approval and more favorable terms will be more likely. We urge you to compare credit-based loan information and terms carefully to determine the best fit for your particular circumstances and we suggest using Credible.com to do so.
Utilizing Credible – Credible is a free online loan selection tool that allows you to compare pre qualified rates*, terms, and eligibility rules side-by-side in just a few minutes.
Borrowing Without a Co-Borrower – If you are an international student seeking to borrow without a co-borrower you will find fewer lenders from which to choose. The two lenders listed below do not require a U. S. citizen, permanent resident, or eligible non-citizen co-borrower, however their interest rates and other terms may be less favorable. Certain restrictions apply as noted.
- MPower Financing – Offers loans to eligible international students, undergraduate and graduate, who are enrolled in a degree program and are within two years of graduation.
- Prodigy Finance – Offers loans to eligible international students enrolled in law, graduate business, or postgraduate engineering, law, business, public policy and health science degree programs.

Code of Conduct

As a participant in the Federal Direct Loan Program, Boston University processes federal loans directly through the federal government. Boston University is committed to the following best practices with respect to private loans:

The University will not enter into any revenue-sharing arrangement with any lender.
The University and its employees whose work relates to financial aid will not solicit any gift and will not accept any gift of more than a de minimus value from student loan companies, guaranty agencies, or loan servicers.
The University will not assign a borrower’s loan to a particular lender or refuse or delay certification of a loan based on a borrower’s selection of a lender or servicer.
The University will not request or accept from any lender an offer for student loan funds, including funds for an opportunity pool loan, in exchange for a promise of a certain number of loans, a specified loan volume or a preferred lender arrangement.
The University will not allow employees of student loan companies to staff its Financial Assistance office or other financial aid offices or to answer student or parent calls.
University employees whose work relates to financial aid will not accept any fee, stipend, honorarium, or other payment to consult for or provide services to a lender guaranty agency or loan servicer.
University employees whose work relates to financial aid may serve on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors only with the prior written approval of the Vice President and Associate Provost for Enrollment & Student Administration, the Treasurer, or the Associate Vice President, Boston University Medical Campus Financial & Business Affairs. University employees who serve on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors will not accept anything of value (other than reimbursement for reasonable expenses) for such service.

Additional Resources

Loan Timelines

ACTION STEP	WHEN SHOULD I ACT?	WHERE CAN I GET HELP?
1	Do I need to borrow? How much?	Evaluate your finances and determine if you need to borrow, and how much 2 – 3 months before the semester payment deadline.
2	What am I looking for in a loan and how to pick a lender?	Start identifying the elements of a loan that are important to you and decide which loan you will apply for 1 – 2 months before the semester payment deadline.
3	How do I apply for a loan?	Decide which loan product you will apply for 1 – 2 months before the semester payment deadline.
4	When should I apply for a loan?	Be prepared to submit your application approximately 45 days before the semester payment deadline, to maximize the likelihood that the lender will approve your loan by the date the bill is due.

MBA CENTER

For Residential MBA Students:
CONTACT
mbacenter@bu.edu
617.353.7800

OFFICE HOURS
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For students in the MSBA, MSMFT, MiM & PhD programs:

CONTACT
qstmsphd@bu.edu
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