The Idaho Advantage Loan is a private student loan that can be used to pay for qualified educational expenses including tuition, room and board, books, and other school related expenses.

Also known as an “alternative student loan,” a private student loan is made by a private financial institution and used to cover costs of higher education including tuition, room and board, and other expenses. Private student loans serve as a way for students to fill the funding gap between the cost of attending school and the amount of federal loans, grants and available scholarships.

Federal student loans follow guidelines set forth by the U.S. Dept of Education and typically offer lower interest rates compared to private student loans. However, Federal loans, unlike private loans, have borrowing limits, which may not allow a student to borrow enough to cover the entire cost of education. Private loans help students fill the funding gap between the cost of attending school and the amount of federal loans, grants and available scholarships. Both private and federal student loans allow students to defer full payments while in school and some offer economic forbearance options once a student completes school. Unlike federal loan programs, private lenders assess the credit history of the borrower and cosigner before making a loan.

Eligibility for federal, state and university funded financial aid is determined by completing the Free Application for Federal Student Aid (FAFSA). All students are strongly encouraged to apply for federal aid by completing the FAFSA, which can be obtained online at www.fafsa.ed.gov.

The financial information you provide in the Free Application for Federal Aid (FAFSA) is used by the government to determine your Expected Family Contribution (EFC), which is the amount you and your family are expected to pay towards your education. The EFC is then subtracted from the cost of attendance for your respective school to determine the amount of financial aid you are eligible to receive.

The EFC is a calculated assessment of how much your family is expected to contribute to your college costs. The EFC takes into consideration your family’s financial strength – income and assets. Other factors considered include the number of family members and number of family members in college.