Private Alternative Loans

Some students, usually in expensive programs, take out private loans in addition to federal loans. The federal government does not back alternative loans. These loans are more difficult to qualify for because they require a credit analysis to determine your ability to repay the loan. Alternative loans almost always have a higher interest rate than federal loans and do not have the same benefits. Because of the better terms, we recommend that you investigate the federal loan programs first before pursuing alternative loans. If you still need an alternative loan, we recommend that you check with your school first before applying for one, and rely on their experience. The school can often compare terms and conditions with you. For many alternative loans, the school has to certify to the lender your Cost of Attendance and other financial aid you are receiving before your loan application can be completed. If you take out an alternative loan before applying for financial aid, the aid you might have received could be reduced because of the loan.