Alternative (private) student loans are offered by banks and credit unions and usually require credit approval, with interest rates based on the borrower’s credit history. These loans are not guaranteed by the federal government, and interest typically begins accruing upon disbursement. While not required, students are strongly encouraged to exhaust all federal and state financial aid options before pursuing alternative loans. To review options and apply, and follow the prompts.
- Interest rate type (fixed rate vs. variable rate)
- Annual percentage rate (APR)
- Fees (origination, late, or repayment fees)
- Co-signer release options
- Repayment terms and borrower protections
- Customer service provided
- Lender reputation
- Receive all required disclosures.
- Cancel the loan within the lender’s specified timeframe.
- Receive clear information about interest rates, fees, and repayment terms.
- Understanding all loan terms before accepting.
- Repaying the loan according to the lender’s schedule.
- Notifying the lender of changes in enrollment, address, or financial status.
- It’s important to know that you as a borrower cannot consolidate federal and private loans together.
- Alternative loans usually require a co-signer unless the student applicant can prove substantial income and credit-worthiness to the lender of their choosing.
- A student may borrow up to the cost of education less all other financial aid received.
- A student cannot borrow more than the cost of attendance, regardless of the amount the lender has approved for a student.
How Can I Apply for an Alternative Loan?
Step 1: Consider Federal, State and Institutional Aid First
Before applying for a private educational loan, ÌÇÐÄ´«Ã½ strongly encourages students to explore all forms of Title IV federal student aid, which may offer more favorable terms, even if you believe you may not qualify for federal aid. Completing the FAFSA application ensures that you are considered for all federal options available to you. Federal aid options include, but are not limited to:
- Federal Direct Subsidized and Unsubsidized Loans
- Federal Pell Grants and other federal grants (if eligible)
- Federal Work-Study (FWS)
- New York State aid programs (TAP, Part Time Tap, Enhanced Tuition Award)
Step 2: Research and Select a Private Lender
It is strongly encouraged that students compare lenders’ terms, rates, and borrower protections to see which option is best suited for them. , a third-party website where students can compare private loan options.
Step 3: Submit the Lender’s Application
Step 4: Lender Sends Approval Disclosure
You must actively accept the loan terms.
Step 5: Mandatory Waiting Period
Federal law requires a mandatory 3 business day right to cancel period after the Final Disclosure is issued.
Step 6: Lender Sends Funds to ÌÇÐÄ´«Ã½
Funds are applied to your student account once all requirements are met.
Available Monarch Resources:
- The Office of Financial Aid, located within Student Financial Services, works to eliminate unnecessary barriers to college access and completion. Our goal is to simplify the financial aid process as much as possible, and to make sure students are always engaged and aware of the next steps that need to be taken. Contact our office if you have questions about applying for financial aid or your eligibility at sfs@mariacollege.edu.
- ÌÇÐÄ´«Ã½ Scholarships – ÌÇÐÄ´«Ã½ is fortunate to have many donor-funded scholarships that help support students. Each scholarship is meant to help support students on their transformative journey while here at ÌÇÐÄ´«Ã½. Visit the page to view the current list of funds and apply.
- Tuition Partnerships – ÌÇÐÄ´«Ã½ partners with a variety of third-party sponsors that provide funding to affiliated students. Students whose tuition and fees are to be paid by an employer, agency, or other sponsor, must have authorization on file with the Student Accounts office.