Office of Student Aid : Loans : Private Alternative Loan
Private Alternative Loan
Federal Student Aid First
It is in your best interest to complete the Free Application for Federal Student Aid (FAFSA on the Web) and apply for any student financial aid for which you are eligible, including federal loans 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 definition
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. Each alternative lender has different eligibility requirements (e.g., degree status, enrollment status, and U.S. citizenship), loan rates, repayment terms, and conditions. Some lenders may also require payment of interest while students are in school. Please check individual lender links below for specific information on loan program eligibility.
Valid Loan Term Dates at Penn State:
Fall 2009/Spring 2010 -- August 2009 to May 2010
Fall 2009 only -- August 2009 to December 2009
Summer 2009 only -- May 2009 to August 2009
Private Alternative Loan Considerations
- Apply for student financial aid, including federal loans first – submit the FAFSA each year.
- Apply with a creditworthy cosigner to receive a more competitive interest rate and a better chance for approval.
- 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.
- If possible, pay interest while in school to reduce total repayment.
- Understand the responsibilities of the cosigner. The cosigner is equally responsible for repayment of the loan and his/her credit is affected.
IMPORTANT:
- Do not apply for your alternative loan more than 90 days prior to the beginning of the semester for which you are applying. Otherwise, your credit check may run out and the loan will not be valid at the time of disbursement.
- Schedule ALL of the courses you plan to take BEFORE you apply for your loan to assure your loan is certified for the correct amount. Increases may not be possible after the loan is certified.
- Submit your loan application to your lender. Your lender will review your loan application and determine that it is complete. If approved, the lender will then submit a loan certification request to our office on your behalf.
- If you cancel your loan or change the amount with your lender, notify the Office of Student Aid.
- A separate loan application is required for summer session(s) and for each academic year.
- Use only valid loan term dates. Invalid loan term dates may delay certification of your loan.
You have the right to select the alternative lender of your choice. The following is a list of lenders most commonly utilized by Penn State students. Neither Penn State nor the Office of Student Aid intends any specific endorsement of these products by including them on the list.
An alternative loan is an agreement between the borrower and cosigner and the lender. Penn State cannot in any way be held liable in the event the borrower is dissatisfied with the rates, terms, or service provided by any lender, nor is Penn State responsible for any damages incurred by the student as a result of the student's choice of lender.
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
Citizens TruFit Student Loan
Degree students only
Enrolled at least half time
Credit Union Student Choice
Degree students only
Enrolled at least half time
Discover Student Loans
Degree students only
Can be enrolled less than half time
(Note: loans for students who are less than half time go into immediate repayment).
Must be making satisfactory academic progress
PNC Solutions Loans
Degree students only
Enrolled at least half time
Sallie Mae Smart Option Loan
Degree and non-degree students
Can be enrolled less than half time
Note: Mandatory interest payments are required while the student is enrolled in school.
SunTrust Academic Answer Loan
Degree students
only
Enrolled at least half time
US Bank No Fee Education 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
Private Alternative Loans Offered by State Agencies
(Available to students who reside within the state indicated)
This list is not exhaustive. You may want to investigate possible private alternative loan options through your home state higher education agency.
Connecticut Higher Education Supplemental Loan Authority (CHESLA)
Connecticut residents only
Degree students only
Enrolled at least half time
Must be making satisfactory academic progress
Maine Educational Loan Authority (MELA)
Maine residents only
Degree students only
Enrolled at least half time
Massachusetts Educational Financing Authority (MEFA)
Massachusetts residents only
Degree students only
Enrolled at least half time
Must be making satisfactory academic progress
New Jersey Class Loan
New Jersey residents only
Degree students only
Enrolled at least half time
Must be making satisfactory academic progress
FAFSA must be submitted
Vermont Student Assistance Corporation (VSAC) Advantage Loan
Vermont residents only
Degree students only
Enrolled at least half time
Must be making satisfactory academic progress
FAFSA must be submitted
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.