Private Loans are credit-based and are meant to supplement other financial aid awards that a student enrolled at least half-time may receive in order to cover the cost of education. Private loans may be applied for by the student alone, or the student may have a cosigner apply for the loan as well. If a cosigner applies with the student, then the interest rate on the loan may decrease. Private Loans have a minimum loan requirement that varies depending on the lender the student chooses. Interest accumulates on private loans while a student is attending school. Some private loan interest may need to be paid during enrollment in school.