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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

Sacramento City 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)). Sacramento City 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

SCC's Private Loan Policy

SCC Financial Aid students have the option of applying for a Private Loan if they have received the following Financial Aid Office notifications:

  • Award Notice. Students must make an appt with Financial Aid Staff to discuss options.*
  • Denied Final Notice: Students with a BA degree or reached 150 units attempted
  • Financial Aid Satisfactory Academic Progress(SAP): Appeal Denied Notice
  • No Need Notice: No Aid, expected family contribution is too high, eligible only for an Unsubsidized loan

*In certain cases, a student who is eligible or could be eligible to receive Federal Direct Loan(s) may opt to have a private loan instead or both. Students are required to make an appointment with a Financial Aid Staff. The Financial Aid Staff will discuss available options and the completion of an award adjustment form to decline federal/state financial aid.

SCC provides private student loan certification services for students meeting the following requirements:

  • All students must complete a FAFSA application with SCC; and
  • All students must have an SCC-eligible educational goal and major; and
  • All students must be enrolled at least half-time, in-session eligible units (course applicable towards their program/major (Fall/Spring with 6 units; Summer with 3 units)
  • Students enrolled in less than 6 units with SCC, but are also enrolled within The Los Rios Community College District for a combined minimum of six eligible units, must submit a "Consortium Request Form" for consideration to meet the six-­unit requirement.

SCC does not advise or promote Private Loans or Lenders. It is the student's responsibility to research and determine what lender they will select.

Some of the Lenders students have selected are:

  • Sallie Mae
  • Wells Fargo

SCC Private Loan Disbursements

How will my private loans be disbursed?

You'll be paid in at least two installments. No disbursement can exceed one-half of your loan award(s).

One-semester attendance

Loans will be disbursed in 2 payments. The first payment will be disbursed after the loan has been certified. The second disbursement will be funded at the midway point of the semester (student must still be eligible).

Fall and Spring attendance

Loans will be disbursed in 2 payments. The first payment will be disbursed after the loan has been certified. The second payment will be funded when the spring semester begins (student must still be eligible).

Please Note: If your loan request conflicts with the anticipated graduation date and academic loan period, we may request you meet with a counselor to complete an iSEP (Integrated Student Educational Planner) for further determination.