Smart Borrowing

Encouraging responsible borrowing

The Smart Borrowing program encourages borrower responsibility by providing students with the information they need to make smart financial decisions. The program emphasizes first turning to no-cost grants and scholarships, then to low-cost federal student loans, and only then to alternative financing sources such as private student loans.

For lenders, our focus on Smart Borrowing can support their credit risk goals and improve the quality of their private student loan portfolio by reducing the likelihood of over-borrowing. For schools, it can help ensure that their students can fund their tuition and complete their education goals.

Visit to see the program in action.