Aerial view of campus with Williamsport, the Susquehanna River and Bald Eagle Mountain as a backdrop

Private Educational Loan

When is a private educational loan appropriate?

This loan is for students to cover college expenses that are not covered by other financial aid resources. The Financial Aid Office strongly suggests exhausting other loan options before looking into Alternative Loans as they are not subject to federal loan regulations like Stafford and PLUS loans. Interest rates, fees, and loan amounts are subject to your credit score and most students are required to have a cosigner to qualify. 

Some states have their own private loans for residents of that state. Some state specific alternative loans include: Alaska, Maine, Massachusetts, and New Jersey. Please check with your state to see if private state loans are available. The interest rate and fees on private/alternative student loans are dependent upon many variables, one of which is the FICO score of the borrower and/or co-borrower.

Students should always take Federal student loans first before considering any private student loans. Federal Perkins and Stafford loans have a fixed interest rate. Parent PLUS loans have a fixed interest rate. Most private student loans require a credit-worthy co-signer. Please be aware that private alternative loans can have variable interest rates; these interest rates may change monthly or quarterly depending on the bank/lender. However, there are certain private lenders that are now offereing fixed interest rates. Interest does accrue on private/alternative loans, and may be deferred while in school, or depending on the lender must be paid while in school. We recommend, when possible, to pay any accrued interest while in school and during the six-month grace period. Please review the information listed below for each bank/lender very carefully before making your choice, and you may want to visit the lender's website for more details.

Lycoming College does not accept any revenue sharing funds from any lender.

Due to Regulation Z requirements, banks/lenders must provide several disclosures and a Self Certification form to the borrower BEFORE the loan will be disbursed. This will slow down the approval and disbursement of all private student loans. PLEASE FOLLOW ALL INSTRUCTIONS FROM THE LENDER AND RESPOND IN A TIMELY WAY SO YOUR LOAN CAN BE PROCESSED AS QUICKLY AS REGULATIONS ALLOW. Private student loans will now take a minimum of three (3) weeks from the start of your application to disbursement. Your bank/lender will give you a Self Certification form. The student is responsible to complete this form and return it to the bank/lender, not Lycoming College. Information required for this form - Cost of Attendance and Estimated Financial Assistance are both found on your award letter that can be found on WebAdvisor. If you do not understand any of the required documents, you must contact your bank/lender for clarification.

For more information on Private Alternative Loans please visit ELM Select at

Please don't hesitate to contact the Financial Aid office at (570) 321-4040, Monday through Friday, 8:00 a.m. to 4:30 p.m. if you have any questions. You can also email us at