Private education loans are credit-based consumer loans that can be used to pay for any postsecondary education-related expenses, including tuition and fees, books, and transportation. Always consider your lowest cost options first, including grants, scholarships, and federal student loans.

After exhausting loan opportunities available from the federal financial aid programs, learners may consider private loan programs as an additional source of funding. Kenzie Academy maintains a list of suggested private loan lenders that we believe offer strong customer service, competitive loan terms, and easy loan processing.

The Financial Aid Office has compiled a list of lenders who have agreed to provide private lender applications to Kenzie learners.

Preferred Lender List

Below is a list of private loan lenders, who upon approval, have indicated that they are willing to provide applications for private educational loans to Kenzie learners. This list is not an endorsement or recommendation by SNHU or Kenzie Academy. Each lender’s loan programs may have different requirements, so be sure to review with your lender their application process for their loan program that you might qualify for, and which best suits your needs. These lenders are not affiliated with each other.

Preferred Lender Comparison Information

Preferred Lender List Disclosures

Federal loan regulations, set by the Department of Education, require a school that chooses to provide a Preferred Lender List to borrowers to disclose their method of selecting the lenders included on their list of suggested lenders. This guide is to provide information to borrowers about the method Kenzie Academy’s Financial Aid Office used to create the Preferred Lender List.

According to Section 682.212 of the Federal Register, published by the Department of Education, “A school may, at its option, make available a list of preferred or suggested lenders, in print or any other medium or form, for use by the school’s students or their parents, provided such list:

  • Is not used to deny or otherwise impede a borrower’s choice of lender
  • Does not contain fewer than three lenders that are not affiliated with each other and that will make loans to borrowers or students attending the school
  • Does not include lenders that have offered response to a solicitation by the school, financial or other benefits to the school in exchange for inclusion on the list or any promise that a certain number of loan applications will be sent to the lender by the school or its students” (U.S. Department of Education, 2007).

Why a Preferred Lender List?

  • Provides a comparison of selected lenders in relatively consistent terms, reducing confusion, and assisting borrowers and their families in making the best-informed decisions
  • Provides an opportunity to help educate learners and parents in regard to the student loan industry

Steps Taken with Decision Process

A Request for Information (RFI) is available to lenders with a list of questions regarding their products and services. These questions included the following topics:

  • Origination Fees
  • Standard Repayment Term
  • Current Interest Rates
  • Interest Rate Structure
  • Possible Guarantors
  • Borrower Benefits at Repayment
  • Percentage of Borrowers who Qualify for Benefits
  • Grace Period
  • Extended Repayment Term
  • Interest Rate Ceiling
  • Up-Front Borrower Benefits
  • Possible Loan Servicers
  • Additional Discounts

Throughout the decision process, the committee’s goal was to select a list of reliable lenders who would be able to provide beneficial products and services to the Kenzie Academy community.

Criteria Used to Select Lenders

Borrower Benefits: In considering benefits, it was important to evaluate the lenders who offer borrower benefits to learners as well as the percentage of the actual borrowers who qualified for such benefits. Such borrower benefits that were evaluated included the following:

  • Competitive interest rates and terms
  • Fees paid by the lender or the responsibility of the borrower
  • Availability of repayment options
  • Back-end borrower benefits (i.e. principal reduction, interest rate reduction, etc.)

Quality of Lender Products and Services: In evaluating lenders’ quality of products and services, it was important to determine which lenders provide exceptional customer service to its borrowers as well as the school. Such quality of products and services criteria used to evaluate each lender were as follows:

  • Ease of application process
  • Web-based application and services
  • Proactive customer communication, including easy access to borrower’s current and cumulative borrowing and estimated repayment information
  • A toll-free number for information and advice
  • Timely and responsive processing of loans including resolving issues
  • Knowledgeable customer service representatives
  • Dedicated service or marketing representative assigned to the school
  • Lender’s practice recommending learners to maximize federal financial aid first

Lender Stability: With regulatory changes and market instability affecting lenders’ decisions to remain in the student loan industry, it was important to select lenders who are reliable and will continue to service borrowers for future years. Such lender stability criteria used to review each lender included the following:

  • Mission statement
  • Number of years in the student loan business
  • Source of stability of capital used in providing loans
  • Relationships with other loan partners
  • Existing relationships with guarantee agencies
  • Default rates
  • Reputation at the local, state, regional, and national levels
  • Marketing practices including the promotion of products and services
  • Demonstrated security of borrower information

Code of Conduct

As required by the Higher Education Opportunity Act, SNHU has established a Title IV Loan Code of Conduct that all employees and agents must comply.

The Choice is Yours

You may borrow from any lender you choose as the Preferred Lender List is not an endorsement or recommendation by SNHU or Kenzie Academy, and first-time borrowers will not be assigned to a particular lender.

Federal Financial Aid

Federal and state law also mandates that we disclose the maximum amounts of federal grant and loan assistance that are available, and which learners may qualify for. Maximum eligibility for federal financial aid is based on the results of the FAFSA and is outlined on the learner’s financial aid summary. Federal financial aid may be more favorable than the terms and conditions of private student loans and we strongly encourage students to utilize that aid first. The following is a list of maximum awards in each program and is subject to change:

  • Pell Grant: Amounts up to $6,895 for the 2022-23 academic year depending on the learners EFC (expected family contribution)
  • SEOG: $400 per term (award amounts are dependent on need-based eligibility)
  • Federal Direct Loan: $5,500 (independent learners can receive an additional $4,000)
  • PLUS Loan: A credit-based loan for parent borrowers with a maximum determined by the difference between cost of attendance and the learner’s financial aid award; the PLUS loan has an interest rate of 7.54% for the 2022-23 academic year and an origination fee of 4.228% for loans disbursed before Oct. 1, 2022.

State Financial Aid Options

Review the State Scholarships and Grants page for information on financing options that are available in your state.

Terms and conditions of Title IV loans that are more favorable than private education loans

When financing your education, a federal Direct Loan should be your first choice once you have collected any scholarships and grants you may be eligible to receive.

Federal Direct Loans are fixed-rate federal student loans guaranteed by the government. They can be used to pay for educational-related expenses. Direct Loans have several benefits all designed to help make paying for college more affordable.

One of the most important Direct Loan benefits is the fixed interest rate. Subsidized Direct Loans have a fixed rate of 4.99% for the 2022-23 academic year. There is no interest on this loan while the learner is attending at least half-time. There is an origination fee of 1.057% on this loan.

Unsubsidized Direct Loans also have a fixed rate of 4.99%. The interest rate will remain fixed for the life of the loan until repayment is complete. The interest accrues on this loan while the learner is attending school. There is an origination fee of 1.057% on this loan.

Affordable Repayment Plans

Direct Loan repayment plans are designed to provide flexibility for any budget. Once you complete school and enter repayment, you will have the option to pick from several helpful plans:

  • Standard Repayment: A fixed amount each month based on your principal and interest
  • Graduated Repayment: Lower payments at the beginning of repayment then, over time, payments increase
  • Income-Based Repayment: Monthly payments based on yearly income and loan amount
  • Extended Repayment: For loans totaling more than $30,000, this plan offers a choice of fixed or graduated payments over a period of up to 25 years


Preferred Lender Arrangements are required to be reviewed annually to ensure that competitive products that are in the best interest of the borrower are being offered. Please provide us with feedback regarding any positive and/or negative aspects that you may have experienced when working with a particular lender. You can provide feedback at


U.S. Department of Education (2021-2022). Federal Student Aid Handbook. Volume 2, Chapter 6

U.S. Department of Education. Code of Regulation. 34 CFR 601.10, 668.14(b)(28) Preferred Lender Arrangement Disclosures

U.S. Department of Education. Higher Education Act. Sec. 152, 153, 487(a)(27) and (h)

U.S. Department of Education. Dear Colleague Letter. (GEN-08-06) School Use of a Preferred Lender List in the FFEL Program.

National Association of Student Financial Aid Administrators. Part 601: Institution and Lender Requirements Relation to Education Loans.

National Association of Student Financial Aid Administrators (2007). Statement of Ethical Principles and Code of Conduct for Institutional Financial Aid Professionals.

Spelling, Margaret (09 August 2007). Dear Colleague Letter from the Secretary of Education. Washington, DC.