Alternative loans are private educational loans in which the student is the borrower; however, a cosigner is usually required depending upon the creditworthiness of the student. 

Students have the right to select any lender.    Because the terms and conditions of the loans depend so greatly on the credit score of the borrower and cosigner, we cannot recommend one lender over another.  It is important to be a good consumer and explore all of the Alternative Loan options.  In fact, many loans have different interest tiers and repayment options. It is important to determine what tier you qualify and what your interest rate will be. In general, interest rates are based upon a standard rate then a % is added. Example: if the lowest interest rate is the 3 mo Libor + 3.65% then as of 5/20/2009 the rate would be 4.56% (.91% 3 mo Libor + 3.65).

Remember, all loans are certified for the full year – both fall and spring semesters.  Loans are not processed for one term only.

The Fair Isaac Corporation, the creator of the FICO score, recently clarified that shopping for the best priced private educational loan does not necessarily lower an individual’s credit score as long as the credit inquiries are made within a time frame of 30 days.  We recommend that you shop for the loans during a 30-day period through June and July.  Once you have decided on a loan and have submitted all of the required paperwork to the lender, along with a signed Master Promissory Note (MPN), then we will send certification information to the lender some time towards the end of July. 
The following are questions we suggest asking when speaking with lenders:

• What is my interest rate?
• How often will the interest rate change?
• Are there any fees with this loan?  If so, what are they?
• When do I begin repayment of principle?
• When do I begin repayment of interest?
• If I submit a payment late, can the lender raise my interest rate?

LENDER INFORMATION	BORROWER BENEFITS
Chase Select   Chase  Bank Phone: 866-306-0868 Apply now: http://www.chasestudentloans.com Lowest Rate – 3 mo Libor + 3.65% Fee 0% Variable Rate Highest  Rate – 3 mo Libor + 10.25% Fee 0% Can defer interest and principal while in school Cosigner released after 36 months of on-time payments Must be enrolled at least for 3 credits Offers the fastest electronic processing Student does not have to make academic Progress Can be used for back balances up to12 months after the end of the loan period Citiassist Loan Citibank Phone: 800-Student Apply now: Studentloan.com Lowest Rate – 3 month Libor +4.75 Highest  Rate – 3 month Libor + 11.5 Fee – 0% tp 6% No payments while in school or during grace period, subject to maximum limits .025% interest rate reduction when you enroll in our auto-debit payment program You can be enrolled less than half time 6 month grace period after graduation TruFit Student Loan Citizens Bank Phone: 866-259-3767 Apply now: citizensbank.com/trufitstudentloan Lowest Rate – 1 mo Libor + 2.50% Lowest Rate – 1 mo Libor + 12.00% Fees range from 0-5.00% Can defer interest and principal while in school Cosigner released after 36 months of on-time payments Must be enrolled at least half-time in a degree seeking program International students can borrow with a US Cosigner Can be used for back balances up to 180 days after last date of enrollment. Discover Private loan Discover Phone: 877-728-3030 Apply now: discoverstudentloans.com Lowest Rate – Prime - .5% Fee 0% Highest  Rate – Prime + 4.75% Can defer interest and principal while in school Must be enrolled at least for 6 credits Must maintain satisfactory academic progress 0.25% repayment interest rate credit when payments are set up for automatic debit from a bank account 2% Graduation Reward based on your outstanding principal balance NJ Class Loan For NJ Residents Only Phone: 800-792-8670   Lowest Rate- 7.62% fixed of 3/15/2009 Highest Rate- 8.02% fixed of 3/15/2009  Fee 2% Must be enrolled at least for 6 credits Must pay interest while in school Student has to make academic progress
PNC Solutions PNC Bank Phone: 800-762-1001 Apply Now: PNConcampus.com Lowest Rate – 3 mo Libor + 2.25% Fee 0% Highest  Rate – 3 mo Libor + 8% 6% Fee Can defer interest and principal while in school Cosigner released after 48 months of on-time payments Must be enrolled at least for 6 credits Student does not have to make academic Progress Sallie Mae Smart Options                  Phone: 888-272-5543 Apply Now: SallieMae.com Lowest Rate – 1 mo Libor + 4.5% Fee 0% Highest  Rate – 1 mo Libor + 10.50% 3% Fee Cosigner released after 24 months of on-time payments Must be enrolled at least for 3 credits Offers the fastest electronic processing Must pay interest while in school to avoid cancellation of 2nd half of loan  and possible cancellation of term registration Student does not have to make academic Progress Academic Answer Sun Trust  Bank Phone: 800-552-3006 Apply Now: Suntrusteducation.com Lowest Rate – 1 mo Libor + 3.5% Fee 0% Fee Highest  Rate – 1 mo Libor + 10.25% 0% Fee Can defer interest and principal while in school Cosigner released after 48 months of on-time payments Must be enrolled at least for 6 credits Student does not have to make academic Progress Collegiate Loan Wells Fargo Phone: 800-378-5526 Apply Now: www.wellsfargo.com Lowest Rate – Prime + 1% Fee 0% Highest  Rate – Prime + 7.99% 0% Fee Cosigner released after 24 months of on-time payments Must be enrolled at least for 6 credits 0.50% rate reduction at repayment upon verification of graduation 0.25% interest rate reduction when we automatically withdraw payments
You may borrow from any lender of your choice. The lender you select does not have to be one of the lenders listed above. Please contact Student Financial Services if selecting a lender not listed.   The above benefits are provided for comparison purposes only.  Please contact the lender for exact terms and conditions.

Additional qualification requirements apply for each benefit listed above. Visit each lender’s web site to learn how to earn their benefits.







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We love questions. E-mail us at finserv@lasalle.edu.