Alternative Loans are private loans offered through lending institutions and are NOT part of federal government programs. These loans are available if you need additional financial assistance after applying for all federal and state financial aid programs, including federal loans through www.fafsa.gov.
Private Educational loans should be taken as a last resort after all Federal Loans have been exhausted.
As with all student loans, the amount borrowed must be for educational expenses and cannot exceed the cost of attendance for the loan period. Money is borrowed in the student's name. A cosigner is usually required and loan approval is based on creditworthiness, interest rates, loan fees, and borrower benefits for alternative loans will vary.
Private Education Loan Tips
DO NOT borrow money you don’t really need. Private educational loans generally have higher interest rates than federal loans, so you will often end up paying more money back on a private loan. Make sure you need the funds!
- Be selective in choosing your lender. Look for a lender that will give you the best interest rate, lowest fees, and best repayment plan.
- You may want to find a cosigner. Even with a good credit score, a cosigner may help you get a better interest rate and/or a better repayment plan.