Private Alternative Loans

Mount Aloysius College wants students to be informed before borrowing a Private Alternative Loan.   Private Alternative loans are non-federal educational loans, through a private lending institution, typically issued in the student’s name and may require a cosigner. Each lender has different eligibility requirements which could include degree status, enrollment status, US citizenship, academic progress, etc.  The loan rates, repayment terms, and conditions vary among lenders. Some lenders may also require payment of interest while students are in school. 

REMEMBER:  You Should ALWAYS Take Your Federal Student Aid First
It is in your best interest to complete the Free Application for Federal Student Aid (FAFSA on the web) and apply for any student financial aid for which you are eligible, including federal loans before borrowing private alternative loans. Private loans typically have variable and higher interest rates, more fees, and less flexible repayment options than federal loans and will take into account your credit history and require you to have a co-signer.  These loans are not guaranteed.

 *Note: Due to the Truth in Lending Act, students who apply for a private alternative loan will need to complete the following steps. It is important that you allow sufficient time for processing, as these new requirements may delay loan disbursements by an additional 10 days.  

1. Review your eligibility for federal and state student aid.   Make sure that you’re receiving the maximum eligibility in your Federal Direct Stafford loans for the year.
2. Apply for a private alternative student loan through the lender of your choice.  Be sure to compare lenders before borrowing.
3. Comply with submitting any documentation for you and/or your cosigner to the lender in a timely fashion, if requested.
4. Sign your loan application or promissory note. If you have a cosigner, he/she must to also sign the application.
5. Accept or decline your loan offer from the lender, if you are pre-approved. If you are pre-approved, print out a copy of the pre-approval as proof of your loan for the Controller’s Office.
6. Complete the Private Alternative Loan Self-Certification form which should be provided by your lender.
7. Read and understand the 3 separate disclosures you will receive from your lender throughout the application process. You will receive one disclosure when you apply, another disclosure when you are approved by the lender and offered the loan, and the final disclosure will be sent prior to disbursement.
8. The Financial Aid Office will certify your Private Alternative Loan once we are notified that you’ve completed the lenders requirements and application process.  Once certified, the loan will be added to your award letter and you will be sent a revised copy.  Note: Mount Aloysius must approve the amount you are borrowing.  The total of your loan and other aid cannot be more than your cost of attendance for the year.  Loans are always disbursed in two disbursements.  Examples:  A fall only loan would be disbursed in two separate disbursements with the second disbursement occurring around mid semester.  A loan requested for the year would be disbursed in two disbursements.  One disbursement in the fall and one in the spring.

Tips When Applying for Your Private Alternative Loan

• Apply with a creditworthy cosigner and you may receive a more competitive interest rate and a better chance for approval.
• Compare lenders.  You should be looking for the best loan with the best interest rates and terms you can get.  Don’t be afraid to call the lender with questions.
• Only borrow what you absolutely need.  Look at your budget and if you’re able to pay some of your balance do so.  Remember this is a loan and must be repaid along with your federal student loans.
• Know your interest rate before you sign your promissory note.
• Keep track of your loan debt.  You should know what private alternative loans you’ve borrowed and you can always check on the federal loans you’ve borrowed by going to www.nslds.gov.
• If possible, pay interest while in school to reduce total repayment.  
• We recommend that you do not apply for your private alternative loan more than 90 days before the beginning of the semester for which you are applying. Otherwise, your credit check may run out and the loan will not be valid at the time of disbursement.
• Be sure to check with the Controller’s Office about your balance before you apply for an alternative loan.   
• If you cancel your loan or change the amount with your lender, you must notify the Controller’s and Financial Aid Offices. 
• Summer is a separate term and cannot be combined with Spring or Fall.  Be sure to use valid loan term dates. Incorrect loan term dates may delay certification of your loan.

Remember, you have the right to select the alternative lender of your choice. The following is a list of lenders with whom Mount Aloysius students have conducted business in the past 3 years. Neither Mount Aloysius College nor the Financial Aid Office promotes, endorses, or recommends any of these loan products or lenders by including them on the list.

An alternative loan is an agreement between the borrower, cosigner and the lender.  Mount Aloysius College cannot in any way be held liable in the event the borrower is dissatisfied with the rates, terms, or service provided by any lender, nor is Mount Aloysius responsible for any damages incurred by the student as a result of the student's choice of lender.

Loan Term Dates:

Fall 2012   August 2012 to December 2012

Spring 2013  Jan 2013 to May 2013

Fall 2012 & Spring 2013   August 2012 to May 2013

Summer 2013   May 2013 to August 2013

Fall 2013   August 2013 to December 2013

Spring 2014 Jan 2014 to May 2014

Fall 2013 & Spring 2014   August 2013 to May 2014

***Please note that alternative loans for the summer semester are NOT processed until mid to late June each year and are based on the number of credits you're enrolled in for the entire summer. You will not be able to receive any kind of a refund until funds are disbursed in July.  Please plan ahead.  In addition, remember that alternative loans are subject to a credit check by the lender.  Credit check approvals only last 90 days so you should not apply for your summer alternative loan before April.
For more information on each loan program and access to online applications, please select the appropriate link.

The loans are listed in alphabetical order only—there is no ranking.

If You Are Denied a Private Alternative Loan:

• Before you apply through another lender, you should determine why you were denied at the first lender. Contact the lender and ask why you have been denied and if there are steps you can take to get your loan approved.

Posted May 2010 updated April 2013