Alternative Loan Interest Rates
Alternative Loan Benefits:
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Borrow up to the true cost of education
- Fast eSignature process
Alternative loan interest rates are variable and based primarily on your credit history. Applicants with better credit, and/or a co-signer with better credit, will generally receive a lower (better) rate.
How to Calculate Alternative Loan Rates
Alternative student loan rates are calculated to be a combination of a base rate (either Prime Rate or LIBOR Rate) plus or minus a spread or margin (+/- X%). The rate will fluctuate as the Prime or LIBOR rate changes. Your specific rate will be disclosed to you prior to the disbursement of your alternative student loan. We encourage you to review and save all documents from your lender.
Apply With a Co-signer
While not required, we strongly encourage undergraduate students to apply with a creditworthy co-signer if they may have difficulty qualifying for a loan due to limited income and credit history. This may increase an applicant's chances of approval and of possibly obtaining a better interest rate.
The Prime (or LIBOR) rate is a "reference or base rate" that banks use to set the price or interest rate on many of their consumer loan products. Learn more about Student Loan Rates in our Rates Section.
Benefit: Borrowers can receive a 0.25% - 0.50% repayment interest rate credit from certain lenders when payments are set up for automatic debit from a checking or bank account. This can translate into significant savings over the course of repayment. To see what lenders offer this perk, use the alternative student lender compare tool.
Find an Alternative Loan for College
Alternative Student Loan Repayment
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.
