FAFSA School Code: 001146

Alternative/Private Education Loans

Certifications of Alternative/Private Education loans take up to eight weeks to process. All certification requests received by June 24, 2016 will be certified by the Fall fee payment deadline of July 27, 2016 if your file is complete (all other awards accepted or declined AND all “To Do List items” have been completed).

Fall 2016: First possible disbursement date is September 1, 2016

Spring 2017: First possible disbursement date is February 2, 2017

Alternative private loans are offered through a lending institution and are not a part of federal student aid programs. Interest rates and fees for private loans vary between lenders and are typically based on the credit of the borrower and cosigner. It is the responsibility of the student to research and understand the implications of borrowing an alternative educational loan. Keep in mind that alternative loans, along with other aid and educational resources, can never be more than the cost of attendance.

Think FAFSA first. We strongly encourage students to file a Free Application for Federal Student Aid (FAFSA) to determine their eligibility for federal student aid and Federal Direct Stafford Loans before considering alternatives. While there is a great range of private educational loans available, we do not recommend alternative loans in most cases, as they do not have the beneficial aspects of Federal Direct Stafford Loan programs. If you need to pursue a private loan, make sure you get all the facts.

Understand your loan options

Many families consider financing a portion of their student’s education with either a Federal Direct PLUS Loan or a private alternative loan.  The comparison chart below will help you understand the features of each type of loan.

 

Federal PLUS Loan

Private Student Loan

Private Parent Loan

Primary Borrower

Parent

Student

Parent or other eligible non-student individual

Loan Maximum

Up to school-certified cost of attendance minus other financial aid received.

Generally, up to school-certified cost of attendance minus other financial aid received.

Varies by Lender

Interest Rate

6.84% fixed rate if disbursed during the 2015/16 aid year.

Rates are based on the borrower’s credit history.

Rates are based on the borrower’s credit history.

Origination Fee

4.272% for loans disbursed between 10/1/15-9/30/16

Varies by lender, most offer 0%

Varies by lender, most offer 0%

Repayment Term

10-25 years

Varies by lender

Varies by lender

Payment Flexibility

PLUS loans are eligible for graduated and extended repayment options, federal consolidation, and some public service loan forgiveness options.

Repayment options vary by lender.

Repayment options vary by lender.

Credit Check Required

Yes. Applicant or endorser cannot have adverse credit history.

Yes. Loan approval and pricing is generally based on creditworthiness.

Yes. Loan approval and pricing is generally based on creditworthiness.

Minimum Enrollment Status

At least half time

Varies by lender, some offer loans for students enrolled less than half time.

Varies by lender, some offer loans for students enrolled less than half time.

Options for Denied Loans

If parent applies and is denied, the student is eligible for additional Unsubsidized Stafford Loans.

If student is denied, they may apply with a cosigner.

Varies by lender.  Parent or other creditworthy individual may be able to obtain a cosigner.

Application Process

Parent-PLUS Loan Application

Online with lender

Online with lender

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