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UNDERGRADUATE LOANS AVAILABLE: ALTERNATIVE (PRIVATE) LOANS |
| We
strongly recommend that you use an alternative loan as a measure of
last resort and pursue all of your Federal Loan options first. Alternative education loans are private loan programs offered through banks for the purpose of supplementing a student's financial aid package. They are not federally endorsed or guaranteed, but they must be certified, or approved, through the SU Office of Financial Aid and Scholarship Programs to ensure that the loan does not exceed your cost of attendance (budget) minus all other financial aid. Alternative loans are borrowed by the student but generally offer the option of applying with a co-signer such as a parent. They are based on creditworthiness, so the initial step in applying is a credit check with the lender. Since the loans are not federally endorsed, each lender's loan program is different: Each loan varies on interest rates, fees charged, the amount you may borrow (minimum and maximum), repayment terms, and repayment benefits. |
| Choosing
an Alternative (Private) Loan
There are numerous alternative loans available to select from. We offer a list of the various alternative loan lenders that SU students have borrowed in the past. Alternative loans vary widely from product to product, so it is very important to research a few loans and compare them before making a decision. Many lenders will not be able to provide specific interest rates or fees until you go through a credit check because these details depend on your credit score. However, shopping around by applying for multiple loans results in multiple credit checks, which could negatively affect your credit score. An alternative would be to ask the lenders what credit group (good, fair, poor, etc.) the highest percentage of SU students fall into. This will give you a good idea of what loan terms would be offered. We offer for examples of issues that may be important to you when selecting an alternative loan. In addition, please read the Federal Trade Commission Guide on Avoiding Deceptive Student Loan Offers. |
| How
to Apply for an Alternative Loan You
do not need to file a Free Application for Federal Student Aid (FAFSA)
to apply for an alternative loan. However, we strongly recommend
that your file your FAFSA and exhaust all federal loans before applying
for an alternative loan. |
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© 2007 Syracuse University. All rights reserved. |