La Salle University

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Alternative Loans for 2011-2012

Please note if you are applying for a loan for the fall of 2011 you cannot apply for that loan until after June 1st, 2011.

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.

AMS SMART OPTIONS
AMS Sallie Mae
Phone:
888-272-5543

Apply Now:
Salliemae.com


  • Lowest Rate –1 mo Libor + 2%
  • 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 rapid 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
  • Deferred Repayment Option - No minimum payment required until after school
  • Free Tuition Insurance Benefit

 

AMERICAN HERITAGE STUDENT LOAN
American Heritage Federal Credit Union
Phone:
877-331-6703

Apply now:
www.amhfcu.studentchoice.org

 

  • Interested applicants should contact American Heritage for eligibility and program details.

 

CITIASSIST LOAN
Citibank
Phone: 800-STUDENT

Apply now:
Studentloan.com

  • Lowest Rate – 3 month Libor +3.25
  • Highest  Rate – 3 month Libor + 9.00
  • 0% Fee
  • 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

 

TRUFIT STUDENT LOAN
Citizens Bank
Phone: 800-708-6684

Apply now:
Citizensbank.com/trufitstudentloan

  • Lowest fixed rate - 6.75%
  • Highest fixed rate - 12.25%
  • Lowest variable rate – 1 mo Libor + 2.7%
  • Highest variable rate – 1 mo Libor + 9.25%
  • 0% Fee
  • 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.
  • .025% interest rate reduction when you elect to have monthly payments deducted electronically from any eligible bank account
  • Loan Forgiveness - In the unfortunate event of death or total and permanent disability of the student borrower.
  • 0.50% interest rate reduction when you elect to have monthly payments deducted electronically from a Citizens Bank account.

 

DISCOVER PRIVATE LOAN
Discover
Phone: 877-728-3030

Apply now:
Discoverstudentloans.com

  • Lowest Rate – Prime + .5%
  • Highest  Rate – Prime + 6.25%
  • 0% Fee
  • Can defer interest and principal while in school at least half time
  • 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
  • Minimum Loan amount 1,000
  • Available for past due balances with in 6 months

NJ CLASS LOAN
For NJ Residents Only

Phone: 800-792-8670

 

  • Lowest Rate- 6.6% fixed
  • Highest Rate- 8% fixed
  • Up to 3% Fee
  • Must be enrolled at least for 6 credits
  • Must pay interest while in school
  • Student has to make academic progress
  • Available for Graduate students

PNC SOLUTIONS
PNC Bank
Phone: 800-762-1001

Apply Now:
PNConcampus.com

  • Lowest Rate – 3.51%
  • Highest  Rate – 11.21%
  • 0% Fee
  • 0.5% 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
  • Offers rapid electronic processing

 

CUSTOM CHOICE LOAN
Sun Trust  Bank
Phone: 866-232-3889

Apply Now:
Suntrusteducation.com

 

 

  • Variable Lowest Rate – 1 mo Libor + 2.6%
  • Variable Highest  Rate – 1 mo Libor + 9.74%
  • 0% Fee
  • Lowest Rate Fixed – 3.40%
  • Highest  Rate Fixed –13.49%
  • 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
  • 0.25% interest rate reduction for ACH
  • 0.25% interest rate reduction for ACH payment from a Sun Trust bank account.
  • Offers the fastest electronic processing
  • Graduation Reward – 1% principal reduction per loan at graduation
  • Offers rapid electronic processing

 

COLLEGIATE LOAN
Wells Fargo
Phone:
800-378-5526

Apply now:
Wellsfargo.com



  • Choice of Variable or Fixed Interest Rate
  • Variable Lowest Rate – Prime + 0.25%
  • Variable Highest  Rate – Prime + 6.74%
  • Zero Fees
  • Relationship Discounts - 0.25%-0.50% Interest Rate Reduction for prior Wells Fargo Education borrowing or qualifying banking accounts with borrower or cosigner
  • Cosigner released after 24 months of on-time payments
  • 0.25% Interest Rate Reduction at Graduation
  • 0.25% Interest Rate Reduction with Automatic Debit payments
  • Available for Graduate and Undergraduate students
  • Loan can be deferred while in school
  • No minimum enrollment is required
  • No academic progress is required
  • Offers rapid electronic processing



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E-mail us at finserv@lasalle.edu.