Alternative Loans

Private education loans not guaranteed by federal funds are commonly called “alternative loans” and have different eligibility criteria determined by the individual lenders.  We recommend that parents and students consider these programs after Stafford and PLUS loan options have been explored.  Some characteristics of alternative loans include:

• No FAFSA needed for alternative loans
• Interest/repayment terms set by lender
• Other aid affects amount you may borrow
• Eligibility criteria determined by lender
• Credit check required
• Lender may require co-signer
• Maximum loan eligibility is cost of attendance minus other financial aid.  
  

 

 

The following lenders have a history of loaning funds to students at The University of Southern Maine.  
The listing of these lenders does not constitute an endorsement.

 

Lender Name/Web Link and Phone Number	Must be enrolled in degree program?	Must maintain satisfactory academic progress?	Minimum Enrollment	Borrow for prior balance?
Academic Answer Loan 1-866-763-6350	NO	NO	6 credits	NO
Access Group 1-966-930-1543 (Graduate Students Only)	NO	YES	6 credits	YES   8 months
Chase Bank 1-866-306-0868	YES	NO	Less than   6 credits	YES  12 months
Citizens Bank TruFit Student Loan 1-800-708-6684	Yes	No	Half Time	Yes
Maine Loan  1-800-922-6352	NO	NO	6 credits	YES 12 months
Discover Student Loans 877-728-3030	Yes	Yes	No	Yes 6 months
Sallie Mae 1-888-272-5543	YES	NO	Less than    6 credits	YES  6 months

 

Helpful Link   –  http://famemaine.com/education/alternativeLoanAndMoneyMngmntTutorial.asp

 
Questions to Ask When Evaluating Loan Programs:

 

1. Is eligibility for the loan income-based or credit-based?
2. Does having a co-signer decrease the interest rate and/or loan fees?
3. What are the credit criteria for the borrower and co-signer or endorser?
4. Is school certification required?
5. What are the loan fees and when are they paid?
6. How is the interest rate calculated? Is it fixed or variable?
7. What is the current interest rate and the Annual Percentage Rate (APR)?
8. Is there a grace period?  If so, how long?
9. When does repayment begin?
10. Are there deferment, forbearance and cancellation provisions?
11. What are the repayment options?