Private Alternative Loans

Alternative loans are issued by individual banks and are not part of the federal financial aid program. They are designed to help students with educational expenses that exceed other financial aid. These loans have higher interest rates than the federal loans. Also, monthly interest is accrues even when you are enrolled as a student. Interest rates can change quarterly and have no cap. Alternative loans cannot be included in a federal consolidation loan. Also, you or your co-signer must be creditworthy. Please talk with your financial aid advisor and make sure you have applied for all other types of aid before applying for an alternative loan.