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Frequently Asked Questions

Answers to frequently asked private student loan questions

Applying

Getting the money

Repaying your loan

Applying

Will having a co-signer help me get approved for a private college loan?
With a strong co-signer, the likelihood of getting a fast approval on a private college loan goes way up. Click the following link for Co-Signer Frequently Asked Questions. In addition, a Co-signer Release option is available to borrowers who make their first 48 payments on time and who elect to make automated payments.1

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Before applying, do I need to fill out the Free Application for Federal Student Aid (FAFSA) form, get federal loans, or inform my financial aid office?
No. We do recommend, however, that you apply for federal aid first.

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Do I need to know what school I'm attending to apply for a Monticello Student Loan?
Yes. Your school information is important. Once your loan is conditionally approved, we'll ask you to verify your enrollment information.

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What if my school is not on the eligible school list?
Chances are, it is. If the school isn't on the list, we'll speak with your school's financial aid office for you and tell them how to get on the eligible school list.

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How do I apply if I don’t know my enrollment status yet?
Contact your college and they'll tell you whether they consider you "full-time," "half-time," "part-time" or some other designation. You must be enrolled at least half-time in a degree or certificate program to be eligible for a Monticello Undergraduate Student Loan.

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I'm a foreign student attending a U.S. school. Can I still apply for a Monticello Student Loan?
Yes. In order to be approved, you'll need to apply with a creditworthy co-signer who is a U.S. citizen or permanent resident, and who has resided in the U.S. for the previous two years.

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Getting your money

How much can I borrow?
The minimum is $1,500 per year. The maximum is $40,000 per year.2 The lifetime limit is $130,000.

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How quickly can I get the funds?
With our online application, downloadable credit agreement and fax-back option, you could receive funds in as little as 5 business days after your conditional approval. You will need to keep your end of the bargain (like providing quick, proper proof of your enrollment in your school) to help us keep ours. The 5 steps at a glance.

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Where do you send the check?
The check goes directly to you, and it is paid directly to you.

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Do I have to pay any out-of-pocket fees?
No. Our origination fee is added to the loan principal, and there are no additional out-of-pocket fees.

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Repaying your loan

What are the repayment options for a Monticello Undergraduate Student Loan?
You have three choices:

  1. Delay repayment while you're enrolled in school at least half-time, for up to a maximum of five years.
  2. Save on fees by making small, interest-only payments while enrolled in school at least half-time.
  3. Or start paying right away, which will save you the most over the life of the loan. Additionally, get up to 0.5% interest rate reduction if you make your first 36 payments on time and elect automated payments.3
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How long can I take to pay?
It’s your choice. Monticello Undergraduate Student Loans come with a maximum 20-year repayment term and $25 minimum monthly payment. Monticello Undergraduate Student Loans have a variable interest rate equal to the LIBOR Index plus a margin as low as 3.50%. The amount of your margin may be different, based on your loan program and your credit history.

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Is there any penalty for paying the loan off early?
No. You can pay off your Monticello Student Loan at any time, even if you're still in school.

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  1. Co-signers will be eligible for co-signer release upon request if (1) the first 48 payments of principal and interest are paid on time, (2) at any time prior to the 48th on-time payment, the borrower who receives the monthly bill elects to have monthly principal and interest payments transferred electronically from a savings or checking account, and continues to make such automatic payments through the 48th payment, and (3) the borrower meets creditworthiness criteria at the time of the release of the co-signer. The co-signer release is only available for undergraduate, graduate, and continuing education loans.
  2. Undergraduate and graduate borrowers may borrow annually up to the lesser of the cost of attendance or $30,000 ($40,000 for certain schools where the annual cost of attendance has been determined to exceed $30,000). Borrowers in Continuing Education and K-12 loan programs may borrow annually up to $30,000.
  3. The 0.25% interest rate reduction is available for borrowers who elect to have monthly principal and interest payments transferred electronically from a savings or checking account. The interest rate reduction will begin when automatic principal and interest payments start, and will remain in effect as long as automatic payments continue without interruption. This reduced interest rate will return to contract rate if automatic payments are cancelled, rejected or returned for any reason. Upon request, borrowers are also entitled to an additional 0.25% interest rate reduction if (1) the first 36 payments of principal and interest are paid on time, and (2) at any time prior to the 36th on-time payment, the borrower who receives the monthly bill elects to have monthly principal and interest payments transferred electronically from a savings or checking account, and continues to make such automatic payments through the 36th payment. The reduced interest rate will not be returned to contract rate if, after receiving the benefit, the borrower discontinues automatic electronic payment.