Alternative Loans

Alternative loans are designed to assist students and their families who need additional educational financing and to cover additional costs not included in their financial aid package. There are many differences between the types of loans including interest rates, repayment terms, loan limits, eligibility and co-signer requirements, and loan fees.

Typical components of these types of loans include:

• Loan approval is generally based on creditworthiness and ability to repay.
• In most cases, the student's eligibility is the lesser of the cost of attendance minus other financial aid or the annual loan maximum amount
• 6 month grace period
• Process for approval usually takes 7-14 days
• Interest rates are higher than Federal Direct Loans

When applying for an alternative loan, students should understand the terms of each loan and ensure that they are applying for an alternative loan, not a federal student loan. Students are automatically considered for Federal Direct Subsidized and Unsubsidized Loans when submitting the FAFSA. Applications for alternative loans should be submitted electronically on the lender's web site.

Because the number of lenders making alternative loans, and the interest rates and borrower benefits of those loans, are changing daily, we are not listing any lenders on this site. If you need help searching the web for private education loans, please contact your counselor.

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