Private Alternative Loans
In addition to
Federal Stafford Loans, some students (usually those in very expensive programs), take out private loans for educational purposes. Since private alternative loans are offered by private lenders, the federal government does not provide oversight or assistance on these loans. It is more difficult to qualify for private loans because they require a credit analysis to establish your ability to repay the loan. Usually undergraduate students must provide a cosigner to qualify. Alternative loans almost always have a higher interest rate than federal loans and may not have the same benefits or terms of repayment. As a result, we recommend that if you need to borrow, you borrow using Federal Stafford Loans first before looking at alternative loans. If you still need an alternative loan, check with the financial aid office at your school first before applying, and rely on their experience.
Other Loans
You or your parent may be able to borrow money for college by using the equity in the family's home or some other asset as collateral for the loan. Check with your bank and compare the overall benefits and costs of home equity loans to those created specifically for funding student education.
Your college may offer short term loans as well. For more details please contact your college.
No matter which loan(s) you decide to accept, be a wise borrower and only borrow what you need to pay for your educational expenses each year. The
SLOPE Calculator and the
Loan Repayment Guide can help you determine this amount.