Alternative Loan

What is an Alternative Loan?
This loan is a private loan in the student's name. A creditworthy co-signer is highly recommended to keep the loan fees and interest rate to a minimum. The student and co-borrower must be U.S. Citizen or Permanent Resident. International students are welcome to apply for this loan; however a creditworthy U.S. Citizen or Permanent Resident cosigner is required.

Although most lenders provide these loans based on at least half-time enrollment, there are a few lenders who will provide this loan to students enrolled less than half-time.

How much am I eligible to apply for?
You may borrow up to the cost of education minus any other financial aid received. However some lenders have a limit to the amount that you can borrow to help with loan indebtedness.

What is the interest rate on this loan?
The interest rate on this loan varies by lender and can depend on the creditworthiness of the student and their co-signer.

When do I pay the loan back?
Repayment on this loan will begin after you graduate or cease be enrolled at least half-time. Typically, you have 10 years to pay the loan back. There is no prepayment penalty so you can pay the loan pay earlier if you wish.

Attention: Undergraduate Students!!
Due to the various interest rates and fees, we encourage all undergraduates to have their parents apply for a PLUS loan first with the Alternative loan as a loan of last resort.   A federal loan program, the PLUS Loan is a low interest, federally backed student loan guaranteed by the U.S. Government. The PLUS Loan can be used to pay for the total cost of education less any aid you've already been awarded. Approval is dependent on the parent borrower's credit rating.  Interest Rate is a fixed rate of 8.5% and may be lowered with electronic and on-time repayment benefits.  The interest is also tax deductible.  This loan can be deferred while the student is in school and with no prepayment penalty.  Unlike an Alternative Loan, this loan is eligible for federal consolidation.  The parent may also be eligible with repayment assistance through deferments and forbearance.

To learn more and apply click here on Federal Parent (PLUS) Loan.

How to apply for the Alternative loan