Alternative Loans

About Alternative Loans

  • It is strongly encouraged that the student uses all available Federal Loan programs before considering a private/alternate loan.
  • Alternative loans are available to students who need more financial resources to meet educational expenses including tuition, computers, and tools not covered by financial aid.
  • The amount a student can borrow is determined by the following:
    • Cost of Attendance minus Grants, Federal Loans, Scholarships, Other Resources = Alternative Loan Amount
    • To be eligible for an alternative loan the applicant must satisfy the following requirements:
      • U.S. citizenship or eligibility as a non-citizen.
      • Enrolled at least half-time in a certificate or undergraduate degree program.
      • Applicant must be creditworthy or have a creditworthy cosigner
      • Satisfactory Academic Progress
      • Below is a chart comparing Federal and Private Education Loans:
 Federal LoansPrivate Loans
Co-signer RequirementNoYes
Credit Check RequirementPerkins/Stafford-No
PLUS-Yes (however, debt to income ratio not included)
Yes
DefermentYesDepends on loan, but generally yes
Grace PeriodPerkins- 9 months
Stafford- 6 months
PLUS- 6 months
Depends on loan, but generally 6 months
Interest RateFixed
Federal Perkins Loan- 5.0%
Direct Subsidized Loan- 3.86%
Direct Unsubsidized Loan- 3.86%
Direct PLUS Loan- 6.41%
Fixed and Variable
FeesPerkins- None
Stafford- 1.051% (disbursed before 12/1/13)
Stafford- 1.072% (new loans disbursed after 12/1/13)
PLUS- 4.204% (disbursed before 12/1/13)
PLUS- 4.288% (new loans disbursed after 12/1/13)
Depends on Loan, but generally no fee
Loan Forgiveness/DischargeYesDepends on Loan/Lender
Penalty for Early RepaymentNoDepends on loan, but generally no penalty

How to Apply for Alternative Loans

Step 1: Download, print, and fill out the Alternative Loan Financing Worksheet. When complete, submit the form to the Student Records and Financial Services Office.

Step 2: Determine the loan amount you will need for both the fall and spring semesters. If you are using the alternative loan to purchase tools, submit a quote along with the Alternative Loan Financing Worksheet.

Step 3: Select your lender from the Preferred Lender List using FastChoice.

Step 4: Complete the Alternative Loan application process required by the lender chosen in Step 3.

Step 5: Have cosigners complete their section of the application process.

Step 6: After the loan is approved by the lender, the Student Records and Financial Services office will receive a request for certification. Loan certification can take up to 30 days once all documentation has been received by the school.

Step 7: Disbursed loan funds are sent to the Student Records and Financial Services Office. If you requested early disbursement for tool or equipment purchases, you will be issued a refund check in the amount of your loan. If the loan is to be used towards the payment of your tuition, the disbursed loan will be applied directly to your semester bill.

*Note: Private Loans will not disburse to a student's bursar account until 10 days prior to the start of classes each semester, unless early disbursement for tools, equipment, etc. has been requested. For loans processed during the academic year, please allow at least 10 business days for disbursement (provided all steps have been completed).