Private Loans, also known as Alternative Loans, help bridge the gap between the actual cost of your education and the limited amount the government allows you to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete.

Some families turn to private loans when the federal loans don't provide enough money or when they need different repayment options. For example, a parent might want to defer repayment until the student graduates, an option that is not available from the government parent loan program. 

Am I eligible for this loan?

You must be enrolled at least half time in an eligible program of study.  Approval is based on the credit history of the student.  If the student chooses to use a cosigner, the cosigner will have to have a good credit history and must be earning at least $18,000 per year.  

How much can I borrow with this loan program?

If you are a graduate student, you can borrow up to the total cost of your education less any other financial aid or loans you are receiving.  This amount is called your "Cost Less Aid" amount.  

Students borrowing on their own signature may borrow up to a maximum of $15,000 per year.  If additional money is needed, you may apply with a cosigner for the total Cost Less Aid amount.

How can I get this loan?

You can request an application be mailed to you online (request an application).  You will then complete the application form and mail it in as instructed.  once received, the application will be processed in 5 business days.   

What is the interest rate of this loan?

The interest charged on the loan is equal to the US Prime Rate as published in the Wall Street Journal. This rate is 9.50% as of July 1, 2000.

Are there any special fees I will pay?

You will be charged a guarantee fee of 6% at disbursement if you are applying with a credit worthy cosigner.  If you choose to apply on your own signature, you will be charged a fee of 8% at disbursement and an additional 3% added to the principal at repayment. The fee will be added to the loan amount requested and deducted from the disbursement.

When will I get my money?

In most cases, your loan will be disbursed in two installments and sent directly to the school as determined by your financial aid office. Your loan money will be used to pay your tuition and fees. If loan money remains your school will credit your student account or pay you directly. 

Can I cancel the loan?

Yes. Your school must notify you in writing whenever it credits your account with your loan proceeds. This notification must be sent to you no earlier than 30 days before, and no later than 30 days after, the school credits your account. You may cancel all or a portion of your loan if you inform your school that you wish to do so within 14 days after the date that your school sends you this notice, or by the first day of the payment period, whichever is later. Your school can tell you the first day of your payment period.   

What are my repayment options?

The graduate alternative loan will be set up for deferred repayment.  You will not be expected to start making payments until 6 months after you have graduated.  Medical students can request a second deferment of up to 4 years.  You will be expected to make a minimum payment of at least $50 per month.

Prepayment of the loan is not a problem and can be done without any additional fees or penalties.

Interest will accrue during any deferment period and will be capitalized - added to the original principal amount - at repayment.