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Alternative loans, also called private loans, are credit-based loans meant to provide additional financial assistance to students when Federal Stafford funding is insufficient. As these are loans that are not regulated by the Department of Education, lenders set their own criteria for credit approval and repayment terms. Not all lenders offer Alternative loans, and of those that do, not all terms and interest rates are the same. It is highly recommended that borrowers research lenders carefully before applying for a loan. Some borrowers will not qualify for a loan solely based on their own credit and may need a co-borrower to be approved. Other borrowers may qualify for approval on their own, but many lenders offer lower interest rates and better repayment terms when a co-borrower is added to a loan application. Alternative loans cannot be consolidated with Federal loans. Many lenders offer combined billing if a borrower has previously taken Alternative and Stafford loans with them. However, if a borrower has loans with more than one Alternative loan lender, repayment will require separate payments until each loan is paid in full.
You can access our lender list through your self service account, by contacting our office at (405) 271-2118 or by email.
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