Private Alternative Loans
Private alternative loans help bridge the gap between the cost of attendance and the amount of financial aid you receive. Eligibility for private education loans depends on your credit score and normally requires a credit-worthy co-signer.
Since private loans usually have higher interest rates, fees, and varying terms and conditions, we strongly encourage our students to apply for financial aid first in order to maximize their federal student loan eligibility. Parents may also wish to review the Federal Parent Loan (PLUS) information. Private loans cost more than the education loans offered by the federal government. Typically private loans have variable interest rates that are pegged to either the Prime Lending Rate or the LIBOR index. Interest on private loans will accrue from the moment a loan is disbursed and repayment normally begins after graduation. Borrowers often have the option to make interest-only payments while in school or deferring and capitalizing the interest until after graduation. You should note that capitalizing interest over 4 years of study will result in a higher balance due than if you paid the interest while in school.
If you need to borrow a private loan we remind you that the lender will perform a credit check on you and your co-signer, if applicable. In order to minimize the number of times your credit is checked you should apply for a loan for the entire academic year rather than prior to each semester.
We encourage you to research all your loan options before applying. It is important to note that all lenders can change their loans on a moment's notice. To find the best alternative loan program for you and your family you may view some of the private loan programs offered by accessing the FinAid.org website. This site offers a dynamic comparison of the top certified private student loans on the market. In addition, this site provides information about state-specific private loans available to families. BE SURE TO VISIT INDIVIDUAL LENDER WEBSITES FOR THE MOST UP-TO-DATE INTEREST RATES, TERMS AND CONDITIONS OF THE LOAN PROGRAMS.
As part of the application process you will be required to provide the Self-Certification form to the lending institution you select for the processing of your loan.