If you are considering applying for an alternative loan, make sure you have considered other options such as the Parent Plus Loan and the payment plan. We caution students about excessive borrowing through private loan programs. Unlike loans through federal programs, private loans, loans are not guaranteed by the government, interest rates are not capped, and deferment/forbearance options may not be available once the borrower enters repayment.
Below is a list of lenders who we feel offer competitive rates and excellent customer service. To select the best option for your circumstances, you should compare interest rates, borrowing limits, and credit requirements.
Private Alternative Loan Recommended Lender List (opens in new window)
Before borrowing a private loan from a lender, you should ask them the following questions:
Lenders may impose origination and/or repayment fees on your loan.
Always ask the lender how fees are determined. Fees may be calculated based on credit review. Therefore, these fees may not be known until after the loan is approved.
Remember: the longer the repayment period, the more interest that will accrue on the loan.
Students should also be aware of Direct-to-Consumer-Loans. Direct to consumer loans are loans that students apply for directly through the lender. The college does not provide financial information to the lender and, therefore, does not certify the loan. Below are some items that should be taken into consideration before applying for a direct to consumer loan.
While we understand that many students must take some of the responsibility to borrow for a private college education, we encourage students to consider borrowing only what they absolutely need. Excessive borrowing can burden a student's credit report, which may make it difficult to take out loans or rent an apartment in the future.
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