| Alternative
Student Financing Options
What are alternative student loans? Alternative student loans are offered by banks or lending institutions to help students and parents bridge the gap between the cost of education and the amount of financial aid received. These are alternative supplemental loans that are NOT guaranteed by the federal government. Terms and conditions can vary according to specific lender guidelines. How much can a student borrow? The actual amount varies according to each student's individual financial circumstance. Other variables include the cost of attendance, financial aid resources and loan limits imposed by the lender. Remember, you are agreeing to repay your loan regardless of whether you complete your education, are satisfied with your education or are able to find a job. If a student loan is your first borrowing experience, consider this responsibility seriously-your ability to borrow in the future depends on it. Are there strict requirements to obtain an alternative student loan? Unlike federally guaranteed student loans, lending institutions that offer alternative student loans may impose certain requirements. In most cases a student must have a good credit history, a low debt-to-income ratio, and a cosigner may be required. Since a credit check is likely, not everyone is approved for an alternative loan. Considerations When Choosing a Private Loan
Estimate Your Loan Amount Your alternative loan amount plus financial aid should not exceed your cost of attendance. The following worksheet will help you determine the maximum alternative loan amount you should request for the academic year.
Applying for Alternative Student Loans Step 1: Undergraduate/Graduate Students may access Methodist University's preferred lender list* Step 2: Once the Undergraduate/Graduate Student has selected a lender, simply click on the "Apply Now" option located in the lender's detailed description to begin the loan application. Step 3: The Lender will notify
the Undergraduate/Graduate Student of additional documentation needed
or approval of the Alternative loan. The lender will then send a
certification request to the Office of Financial Aid for authorization
of Alternative loan. Understanding the Difference between PLUS Loans and Alternative Student Loans
Don't miss the repayment difference Taking a look at the two programs, the PLUS Loan may appear to be the more desirable option for families, except for the repayment issue. Many families may want to delay repayment while the student is in school, and often view alternative loans as their best option. Since lenders offer an in-school deferment option for Graduate/Professional students and a forbearance for parents to delay payment, however, this repayment option may help make the PLUS Loan the better choice. Self Certification Federal regulations now require the completion of a Private Education Loan Applicant Self-Certification form for all private education loans. Student borrowers are required to obtain the form and the information needed to complete it from their institution, sign the form and submit it to their lender. The private loan application and disbursement process cannot be completed until the signed Private Education Loan Applicant Self-Certification form has been received by the lender. If you wish to apply for a private alternative loan, you may obtain the Private Education Loan Applicant Self-Certification form and gather the required information from the Office Financial Aid. Some lenders will prompt you to complete this form as part of your online application process. If so, you will not need to complete a duplicate. Click here for a list of private alternative loan lenders through which Methodist University students have borrowed during the past award years. The lenders are listed in alphabetical order, and the information provided is accurate to the best of our knowledge. You may choose to borrow through any lender, including lenders not on this list. If you choose to borrow through a lender that is not on the Preferred Lender list, contact the lender for complete details. |
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The Office of Financial Aid
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