When is a private student loan appropriate?

If your family has exhausted more attractive financing options such as the Tuitionpay Payment Plan and the Parent PLUS Loan, then you might want to consider a private alternative loan. A private alternative loan is a loan that the student borrows, however, in many cases the student will need to secure a credit-worthy co-signer. The student and co-signer should be fully aware that the loan is in both the student's and co-signer's name. If the borrower defaults (stops making payments or is late in making payments) on the private alternative loan the co-signer is fully responsible for the loan.

If a parent is willing to cosign for a Private Alternative Loan, the Financial Aid Office strongly encourages the parent to consider a Parent PLUS Loan since the terms are much more favorable than any Private Alternative Loan.

• Private alternative loans are available to students as a resource to pay for educational costs
• Students may borrow up to the cost of attendance minus financial aid
• Debt is in the student's name and co-signer's name (if applicable)
• Repayment of the principal typically begins 6 months after graduation or cessation of half-time enrollment; interest, however, is assessed during periods of enrollment
• Interest rates currently range from 8.5% - 15.5% and are subject to change quarterly or monthly; there is no cap to the interest rate