Alternative Loan Options

Alternative Loan Options

What are Alternative Loans?

     Alternative loans are private loans that can provide additional funding for unmet college expenses and are available with a variety of loan terms. The yearly amount cannot exceed the annual cost of attendance minus other financial aid received. 

     You are strongly encouraged to apply for federal funds prior to considering any alternative loans.    Alternative loans are not federally guaranteed and interest rates, fees and terms vary widely by lender. Each lender will look at credit history as well as other factors to determine eligibility for a loan.  Most will require the use of a co-signer or co-borrower and will offer a better interest rate or reduced fees with the use of a co-signer.  Also, because an alternative loan is not a federal loan, many programs allow an International student to borrow as long as he or she has an eligible co-borrower who is a U.S. citizen or permanent resident.

    The primary common denominator is that an alternative loan is a private non-federal loan made to a student, usually with a co-borrower, by a bank or other financial institution.  Alternative loans are not for everyone and should only be considered when all other federal resources have been exhausted.

Lenders

     At The University of Toledo, we will process an alternative loan from any lender you choose. We do not endorse any specific private lender or lending program.  Borrowers are able to choose the alternative loan program with their lender of choice.  The links provided below can be used to begin your search for an alternative loan lender. We have compiled a list of lenders that our students have used in the past to provide information regarding their loan programs through FASTChoice. FASTChoice is a loan comparison tool that can assist students make a wise choice regarding alternative loan borrowing.  Please review lender information carefully and check with multiple lenders for available alternative loan options.  In addition to FASTChoice, we have included several other lender information links for your review below.

    The University of Toledo selected FASTChoice lenders because they have been providing service to University of Toledo students for years.  They have competitive rates and terms.  They offer an easy online application process, send the funds via Electronic Funds Transfer (EFT) and have a history of good customer service. 

FASTChoice Alternative Loans

FinAid.org

http://www.studentlendinganalytics.com/images/SLA-2009-Private-Loan-Guide.pdf

Tips

•  Use the dates below to apply for the appropriate loan period.  The amount you request will be divided equally between the terms in the loan period.  (example:  If you apply for $6000 for summer/fall/spring you will receive $2000 each term.)

                                 For 2011-2012:                                                                              For 2012-2013:

                          05/16/2011 – 05/04/2012              Summer, fall and spring               05/14/2012 – 05/03/2013

                          08/22/2011 – 05/04/2012              Fall and spring                             08/20/2012 – 05/03/2013

                          05/16/2011 – 08/05/2011              Summer only                                05/14/2012 – 08/03/2012

                          08/22/2011 – 12/16/2011              Fall only                                       08/20/2012 – 12/14/2012

                          01/09/2012 – 05/04/2012              Spring only                                  01/07/2013 – 05/03/2013

•  Remember to accept the loan and complete the promissory note and self-certification form and return to the lender.
•  Most lenders offer several different types of alternative loans (undergraduate loans, graduate loans, medical loans, law loans, and even federal loans) so be careful to apply for the correct loan.
•  Carefully review all terms and conditions of the alternative loan before accepting the loan.  Compare fees and interest rates, and keep in mind that some lenders may require payments while in school.

 Alternative Loan Process

1) Choose a lender and visit their web site to apply for the loan or call the lender to apply over the phone.
2) Once credit is approved and the promissory note has been received by the lender, The University of Toledo will receive an electronic loan certification request.
3) The University of Toledo will determine eligibility and submit the electronic loan certification to the lender.
4) Effective February 14, 2010 there are new loan disclosure, acceptance and self-certification processes that have been added to the loan process. Check with your lender to determine the deadlines for each process.
5) Alternative loan funds will be disbursed to the student account once all eligibility requirements are met and the funds have been received from the lender.

Helpful Links:

Federal Aid First 

Alternative Loan Worksheet