PPSE loans usually come from a bank, credit union, online lender, or for-profit educational institution. When considering a private loan, be sure that you carefully read and understand the terms. Private student loans often have less flexibility and fewer protections for borrowers. Never assume that you can sign a loan agreement and get out of it later. Many private student loan agreements are not renegotiable, nor can they be forgiven in bankruptcy. Additionally, private loans do not qualify for federal programs such as Income-Driven Repayment Plans, Public Service Loan Forgiveness, Student Loan Debt Relief, and most other student loan forgiveness programs. 

Income Share Agreements (ISA) are increasingly being used by for-profit companies and schools offering postsecondary education and training programs. Under an ISA, a student agrees to repay a school a fixed percentage of the student’s future gross income after graduation, but only if the student is employed and making above an agreed upon amount. The DFPI licenses and regulates ISAs in California, treating these private financing products as student loans.