Office of Student Aid : Loans : Private Alternative Loan

Private Alternative Loan

What is a private alternative loan?
A private alternative loan is a non-federal educational loan, through a private lending institution, typically issued in the student’s name and requiring a cosigner. It is in your best interest to borrow the maximum amount of federal loans for which you are eligible before borrowing private alternative loans. Private loans typically have variable and higher interest rates, more fees, and less flexible repayment options than federal loans.

Private Alternative Loan Considerations

• Apply for federal loans first – submit the FAFSA each year.
• Apply with a creditworthy cosigner to receive a more competitive interest rate.
• Do your homework. Ask questions of your lender.
• Budget wisely and borrow only what you need.
• Know your interest rate before you sign your promissory note.
• Keep track of your loan debt. Monitor your Loan Debt Summary on eLion. Calculate your estimated monthly loan payment.
• Understand the responsibilities of the cosigner. A cosigner is equally responsible for repayment of the loan and his/her credit is affected.

You have the right to select the alternative lender of your choice. If you are looking for suggestions, the lenders listed below offer the following benefits:

• available to both undergraduate and graduate students
• competitive interest rates (based on credit rating of borrower and cosigner)
• low or no origination fees
• a cosigner release option (varies by lender)
• deferment while in school
• no satisfactory academic progress requirement
• eSignature option
• interest capitalized once at repayment

IMPORTANT:

• To assure your loan is certified for the correct amount, schedule ALL of the courses you plan to take BEFORE you apply for your loan.
• All loan applications must first be submitted to your lender. Your lender will approve your loan application and determine that it is complete, then submit a loan certification request to our office on your behalf.
• A separate loan application is required for summer session(s).

Valid Loan Term Dates

• Summer 2008: May 2008 to August 2008
• Fall 2008/spring 2009: August 2008 to May 2009
• Fall 2008 only: August 2008 to December 2008

For more information on each loan program and access to online applications, please select the appropriate link. The loans are listed in alphabetical order only--there is no ranking.

Chase Select
Degree and non-degree students
Can be enrolled less than half time

CitiAssist
Degree and non-degree students
Can be enrolled less than half time

PNC Solutions Loans
Degree and non-degree students
Can be enrolled less than half time

Sallie Mae Signature Loan
Degree students only
Can be enrolled less than half time

SunTrust Academic Answer Loan
Degree and non-degree students
Enrolled at least half-time

Wells Fargo Collegiate Loan
Degree students only
Can be enrolled less than half time

If You Are Denied:

• Keep in mind that multiple loan applications can negatively affect your credit report. Before you apply through a second or third lender, determine why you were denied at the first lender.
• Contact the lender and ask why you have been denied. Did your credit history negatively affect the application? Did the cosigner's credit history negatively affect the application? Is there something on your credit report (or on your cosigner's) that can be easily corrected? Is there a possibility you will be approved with a different cosigner?
• Get a copy of your credit report, available at annual credit report.com, to review your credit information.