Alternative Education Loans
Students who need additional funds for education, beyond what was awarded on their financial aid award letter, might consider an alternative (or private) student loan. These loans are private educational loans from a lender and are not guaranteed by the federal government. Approval of an alternative loan is based on creditworthiness. Most students will require a co-signer.
The student should file a Free Application for Federal Student Aid (FAFSA) to determine eligibility for federal and state aid before applying for an alternative education loan.
Important information to consider before choosing an alternative loan:
1- Alternative loans have a variable interest rate
which varies from lender to lender. Many reset the interest rate
quarterly.
2- There is usually no cap on how high the interest rate can go.
3- Interest accrues the entire time the student is in school and in
their grace period. Only borrow what you need for the current academic
year and reapply if needed in later academic years.
4- Many lenders include origination and/or repayment fees.
5- The loan is in the student's name but usually a co-signer is
required. The co-signer bears equal responsibility for loan repayment.
6- Not all lenders offer deferments or forbearance options once the loan
has entered repayment.
7- Contact the lender if you have questions.
Alternative Education Loans
Students my choose any lender for their private alternative loans.
Information and application procedures for
alternative loans
Once you click on the link above, and have filled in the demographic
information, you will be asked for the anticipated loan date. This date
would be September for the fall semester or the academic year, January
for the spring semester only, or May for the summer session only. After
indicating the loan date, you will be asked to choose an alternative
loan. You can click on up to 3 lenders and hit the compare button to
have a side by side comparison of the loans. Once you have chosen an
alternative loan, you can actually apply by choosing the "Apply Now"
button on the information page for that alternative loan.
The interest rate and fees that will be associated with the loan you
have chosen will be determined by the lender after a review of credit.
Most lenders will require a co-signer for an alternative loan.
Health Professions Alternative Loans
Certain private loans are only available to students who have been
ADMITTED to an approved allied health program (PT, PA, OT, RT,
NMT, NA, Clinical Lab Science).
Pre-professional majors do NOT qualify.
The UWL Financial Office will not be able to certify a health
professions loan for students not admitted to one of these programs.
Minnesota Student Educational Loan Fund
(SELF) Program
The Minnesota SELF Loan helps students who need assistance in paying for
education beyond high school. Loan eligibility is not based on need. To
be eligible for the SELF program, a student must be a Minnesota resident
who maintains satisfactory academic progress, is enrolled at least half
time in a degree seeking program and is attending an eligible
institution. In addition, the student must have a credit worthy
co-signer and not be delinquent or in default on a SELF or other
outstanding student loans.
Borrowers are required to pay interest quarterly while in school. After
graduating or leaving school the student enters repayment. The interest
rate charged to the borrower changes throughout the life of the loan,
and can change every three months. SELF Loan applicants are required to
complete
SELF Loan Entrance Loan Counseling.
For more information visit the Minnesota Higher Education Coordinating
Board,
www.selfloan.org.
Annual Loan Limit:
Undergraduate $7,500 per grade level
Graduate $9,000 per year
Cumulative Loan Limit:
Undergraduate $37,500
Graduate $55,500 including undergraduate SELF