Student Loans Federal Loans Alternative Loans Repayment Student Resources

Alternative Student Loans

Alternative Loan Benefits:

Borrow up to the true cost of education
Fast eSignature process

Alternative student loans are specialized college student loans designed to provide supplemental funding to cover unmet need.

Alternative student loans can be used for any education-related expenses including tuition, books, transportation and room and board. You may apply for an alternative loan at any time. Approval is generally based on your and your cosigner's credit and should be considered after all federal student loans, grants and scholarships have been exhausted.

Alternative Student Loan Benefits

No principal or interest payments until six months after graduation
0.25% interest rate reduction for automatic debit from a bank account
Borrow up to your Cost of Attendance, based on school certification

Apply for an Alternative Student Loan

Alternative Student Loan Eligibility

You must be a U.S. citizen or a permanent resident, and be enrolled at least half-time in a 4 or 5 year degree program. A cosigner is recommended as it will improve your chances of approval and a lower interest rate.

What is the interest rate Alternative Student Loans?

The interest rate on a alternative student loan is a combination of the Prime or LIBOR rate (the Index rate) plus or minus a margin. The alternative student loan rates will fluctuate as the Index rate changes.

Alternative Student Loan Repayment Options

You have three options including deferment, repayment of interest only, or interest and principle.

Full Deferral: No principal or interest payments due while enrolled in school (up to four consecutive years). Payment of principal and interest will begin 6 months either after graduation or if no longer enrolled at least half time. Interest will continue to accrue during the deferment period and will be capitalized (added to the loan balance) at the time of repayment.

Interest Only: Pay only accrued interest while enrolled in school (up to four consecutive years). Payment of principal and interest will begin either 45 days after graduation or withdrawal from school.

Immediate Repayment: Payment of principal and interest will begin 45 days after loan is disbursed.

Disbursement of Alternative Student Loan Funds

Once you receive conditional approval, you will complete a promissory note and be required to submit documentation to verify the information on your application. If you return the requested documents quickly, you will receive your money soon afterward - it can take a few weeks for the check to be sent to your school.

Additional Benefits of Alternative Student Loans

If you choose full deferment, payments do not have to start on alternative student loans until six months after graduation or dropping below half-time status.
Up to $2,500 in interest may be tax deductible - you should consult a tax advisor for details.
You will receive a 0.25% interest rate deduction for setting up automatic payments from a bank account during repayment.