Student Financial Aid
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.
|
Lender Name, Web Link
and Phone Number
|
Must be enrolled in
degree program?
|
Must maintain
satisfactory academic progress?
|
Borrow for prior
balance?
|
Minimum Enrollment
|
|
Key
Alternative Loan
1-800-539-5363
|
YES
|
NO
|
YES
|
6 credits
|
|
Maine
Loan
1-800-922-6352
|
NO
|
NO
|
YES
|
6 credits
|
|
CitiAssist
1-800-967-2400
|
NO
|
NO
|
YES
|
3 credits
|
Questions
to Ask When Evaluating Loan Programs:
- Is
eligibility for the loan income-based or credit-based?
- Does
having a co-signer decrease the interest rate and/or loan
fees?
- What
are the credit criteria for the borrower and co-signer or
endorser?
- Is
school certification required?
- What
are the loan fees and when are they paid?
- How
is the interest rate calculated? Is it fixed or variable?
- What
is the current interest rate
and the Annual Percentage Rate (APR)?
- Is
there a grace period?
If so, how long?
- When
does repayment begin?
- Are
there deferment, forbearance and cancellation provisions?
- What
are the repayment options?
|