Alternative Loans for 2009-2010
Free or lower-cost Title IV federal, state, or institutional aid may be available in place of, or in addition to, a private education loan. To apply for Title IV federal grants, loans and work-study, please click on the “How to Apply” section.
A private education loan may reduce eligibility for free or lower-cost federal, state, or institutional aid. You are strongly encouraged to pursue the availability of free or lower-cost financial aid first.
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. Below we have listed the 9 most popular alternative loans from which our students have borrowed during the past three years.
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 percentage (%) is added. Example interest rate as of 3/11/2010: 3-mo Libor + 3.9% would be 4.16% (.26% 3-mo Libor + 3.9%).
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 sent a signed Master Promissory Note (MPN) along with all required paperwork to the lender, certification information is then provided by the University. This certification process begins in mid to late 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 principal?
- When do I begin repayment of interest?
- If I submit a payment late, can the lender raise my interest rate?
Changes to Alternative Loan Regulations (effective 2/14/10)
Alternative Loan Borrowers – The Federal Truth-In-Lending Act has changed the regulations necessary for borrowers to receive private educational loans.
Please note that the processing time of an alternative loan from the time you apply to the time funds might be made available is approximately 4 to 6 weeks.
The Federal Truth-In-Lending Act has changed the regulations necessary for borrowers to receive private educational loans. Specific adjustments include providing three detailed disclosures to the borrower throughout the loan application and approval process, obtaining a borrower self-certification form and providing a three-day "right of rescission" period in which the student may cancel the loan.
Borrower Self-Certification
The borrower must submit a signed self-certification form to the lender. This form, which is completed and signed by the student, must show the student’s cost of attendance, expected family contribution, estimated financial assistance, total aid and the maximum private loan amount allowed. The self-certification form is available here. For assistance completing the self-certification, feel free to contact the Office of Student Financial Services.
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LENDER INFORMATION |
BORROWER BENEFITS |
AMS Smart Options
AMS Sallie Mae
Phone: 888-272-5543
Apply Now:
Salliemae.com
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- Lowest Rate –1 mo Libor + 2.5% Fee 0%
- Highest Rate – 1 mo Libor + 9.875% 0% Fee
- Cosigner released after 12 months of on-time payments
- Must be enrolled at least for 3 credits
- Offers the fastest electronic processing
- Must pay interest or select the fixed monthly payment of $25 per month 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
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Chase Select
Chase Bank
Phone: 866-306-0868
Apply now:
http://www.chasestudentloans.com |
- Lowest Rate - 3 mo Libor + 4.0%, Highest Rate – 3 mo Libor + 9.25%
- Variable Rate
- Can defer interest and principal while in school
- Cosigner released after 36 consecutive 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
- International students with a valid Social Security Number may apply with a qualified US citizen or permanent resident cosigner
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Citiassist Loan
Citibank
Phone: 800-Student
Apply now:
Studentloan.com
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- Lowest Rate – 3 month Libor +3.25
- Highest Rate – 3 month Libor + 11.00
- Fee – 0%
- 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
- Student does not have to make academic Progress
- Cosigner released after 24 consecutive months of on-time payments
- International students can borrow with a US Cosigner
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TruFit Student Loan
Citizens Bank
Phone: 866-259-3767
Apply now:
citizensbank.com/trufitstudentloan
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- Lowest Rate – 1 mo Libor + 3.00%
- Lowest Rate – 1 mo Libor + 13.00%
- 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.
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Discover Private loan
Discover
Phone: 877-728-3030
Apply now:
discoverstudentloans.com
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- Lowest Rate – Prime - .1% Fee 0%
- Highest Rate – Prime + 7.75%
- 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
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NJ Class Loan
For NJ Residents Only
Phone: 800-792-8670
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- Lowest Rate- 5.90% fixed
- Highest Rate- 7.99% fixed
- Fee 2%
- Must be enrolled at least for 6 credits
- Must pay interest while in school
- Student has to make academic progress
- Available for Graduate students
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PNC Solutions
PNC Bank
Phone: 800-762-1001
Apply Now:
PNConcampus.com
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- Lowest Rate – 3 mo Libor + 4.00% Fee 0%
- Highest Rate – 3 mo Libor + 10.75% 6% Fee
- .5% Interest Rate reduction for Auto Debit
- 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
- 15 year repayment term
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Academic Answer
Sun Trust Bank
Phone: 800-552-3006
Apply Now:
Suntrusteducation.com
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- Lowest Rate – 1 mo Libor + 3.75% 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
- .25% interest rate reduction for ACH
- Offers the fastest electronic processing
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Collegiate Loan
Wells Fargo
Phone: 800-378-5526
Apply Now:
www.wellsfargo.com
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- Lowest Rate – Prime + 3.25% Fee 0%
- Highest Rate – Prime + 9.99% 0% Fee
- Cosigner released after 24 months of on-time payments
- 0.50% rate reduction at repayment upon verification of graduation
- 0.25% interest rate reduction when we automatically withdraw payments
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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.
