Alternative Loans

Alternative loans are loans that are designed for students but not guaranteed by the federal government.  Alternative loans are offered directly to the student by private lenders.  Just like other student loans, alternative loans must be repaid!

Most students can meet their educational costs by a combination of awarded federal aid and family resources.  It is only when all resources do not meet educational costs that a student should consider an alternative loan.  A student should exhaust all of their Stafford Loan eligibility before considering alternative loans since interest rates and origination fees are usually lower for Stafford Loans.

Alternative loan requirements vary according to the lender, but some of the most common requirements are:

• Ability to pass a credit check, or having a credit-worthy co-signer.
• Loan amount plus all other aid cannot exceed the cost of attendance.
• Enrolled at least half-time (some lenders require full-time enrollment).
• Making reasonable academic progress.

Compare loan terms, interest rates, finance charges, and repayment schedules as you would with any other personal loan.  It is almost impossible to keep a list current showing specific lenders and loan terms, but here is a list of some sources for private loans with websites where you can check out products yourself and even apply online:

Citibank (800) 967-2400

Sallie Mae (800) 695-3317

Wells Fargo (800) 658-3567

Chase (866) 306-0868

US Bank (800) 242-1200

Discover Student Loans (877) 728-3030

PNC Solution Loan (800) 762-1001