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Alternative
Student Financing Options
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. Borrowing Limit The actual amount varies according to each student's individual financial circumstance, the cost of attendance, financial aid resources, and loan limits imposed by the lender. As with any loan, 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. Requirements to Obtain an Alternative 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. For specific details, review each lender page which may be accessed through the preferred lender list . 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 will help you determine the maximum alternative loan amount you should request for the academic year.
Applying for Alternative Student Loans Step 1: Select a lender. Methodist University has provided a Preferred Lender List in alphabetical order. Step 2: Once the student has selected a lender, simply click on the "Apply Now" option located in the lender's detailed description to begin the loan application. The information provided is the best information available to Methodist University so borrowers should confirm benefit offerings with their lender at the time of application. Step 3: The Lender will notify
the 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
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. Loan Cancellation/ Reinstatement A student or parent borrower may cancel or reduce a loan anytime before a loan has disbursed to Methodist University. If the loan has already been disbursed and credited to the student’s account in the Business Office, the borrower may cancel a loan within 30 days from the date it disbursed and credited to the student’s Business Office account. A student may reinstate a Federal Direct subsidized (sub) and unsubsidized (unsub) loan at any time prior to the end of the student’s current academic year enrollment. The Federal Parent PLUS for Parents/Graduate students and Alternative Loans MAY NOT be reinstated once reduced or cancelled. Instead, the borrower must reapply online. To reinstate,reduce, or cancel a loan, the borrower must complete the Loan Revision Form. Important Notice: Canceling any loan disbursement could result in a balance to be due on the student's account in the Business Office which the student will be responsible for paying. Loan Disclosure Methodist University (MU) is prohibited from selecting a lender or recommending a specific lender for students. Through the use of the lender's Request for Information (RFI) form, an Alternative Loan "Preferred Lender List" has been compiled with careful consideration given to the student-borrower. The selected lenders are known to provide a high level of customer service as well as offering competitive borrower benefits. Should students choose a lender not provided on Methodist University's preferred lender list, check with that lender to ensure they offer an alternative loan for undergraduate or graduate students. To ensure students and their families continue receiving sound and impartial advice from the Office of Financial Aid personnel, and to avoid the potential for, or appearance of, conflicts of interest regarding student loans, grants and scholarships, the staff in the Office of Financial Aid at Methodist University, shall abide by the Ethical Principles and Code of Conduct set forth by the National Association of Student Financial Aid Administrators (NASFAA). Below are the guidelines considered in suggesting lenders while in attendance at MU:
In addition to the above requirements, the most important factor is reviewing lenders who can provide the lowest cost loans that can be provided for student and parents. Also considered are available scholarships, and financial literacy programs. Lender's Request for Information (RFI):
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The Office of Financial Aid
Related Links
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