Alternative loans are available from private lenders, such as banks, savings and loan associations, or credit unions. Typically these loans cost the student and family more in the long run, but they may have fewer eligibility restrictions.

The Office of Financial Aid does not encourage the use of alternative loans.  Students should always borrow under the Federal Stafford Loan Program and the Grad Plus program first since the interest rates and repayment options are more favorable than most all alternative loans.

Alternative Financing
Alternative loan programs are available for students who are unable to borrow sufficient funds in the Stafford or Grad Plus programs.

Interest rates and terms very widely with each lender
By comparison the Federal Stafford Loan interest rate is fixed at 6.8% the Grad Plus is fixed at 8.5%.

Guidelnes for Evaluating a Private Alternative Loan Program