Alternative Loans, also known as Private Education 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?

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. A co-borrower is needed if the student has not been employed for 2 years with the same employer on a full-time basis

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.

Are there any special fees I will pay?

You will be charged a guarantee fee of 5% at disbursement. If you choose to defer principal and interest payments, the fee will be 6.5%.

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. 

What are my repayment options?

You have three repayment options: 
1.  Begin immediate payments on both principal and interest
2.  Defer the principal and pay the interest only for up to 4 years while continuously enrolled in school
3.  Defer both the principal and the interest for up to 4 years wile continuously enrolled in school

• A minimum monthly payment of $50 dollars is required while you are making payments. 

• 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.