If students do not meet federal loan eligibility criteria or have exhausted all sources of federal financial aid and still need additional aid to help finance their education, they may consider private alternative sources of educational funding and other payment resources. It is not necessary to complete the FAFSA to be eligible for alternative loans.
Private alternative loans are available to credit-worthy borrowers or students with credit-worthy co-borrowers. The borrowers' credit ratings determine the interest rate and fees on the loan. Students should carefully compare their options when selecting an alternative loan lender.
Interest will accrue on the loan while the student is in school. Grace periods vary by lender. Repayment generally begins after the student ceases to be enrolled in school. Repayment plans and deferment or forbearance options are available but are limited.