How to Apply

 

PRIVATE/ALTERNATIVE LOANS

We strongly encourage you to use all available federal loan programs before using private loans.

  • Unlike Federal loans, this type of loan may be used to pay a previous semester’s bursar bill
  • Credit approval process is more comprehensive than Federal PLUS Loan
  • Borrowing limits may vary by lender

Below is a chart evaluating the differences between federal and private education loans:


 

Federal Loans

Private Loans

Co-signer Requirement

No

Yes

Credit Check Requirement

Perkins/Stafford-No
PLUS-Yes (however, debt to income ratio not included)

Yes

Deferment

Yes

Depends on Loan, but generally yes

Grace Period

Perkins- 9 months
Stafford- 6 months
PLUS- 6 months

Depends on Loan, but generally 6 months

Interest Rate

Fixed      

           Direct Subsidized Loan       3.4%

           Direct Unsubsidized Loan    6.8%

           Direct PLUS Loan               7.9%

           Federal Perkins Loan         5.0%

Fixed and Variable

Fees

Perkins-None
Stafford- 1.0%
PLUS- 4%

Depends on Loan, but generally no fee

Loan Forgiveness/Discharge

Yes

No

Penalty for Early Repayment

No

Depends on Loan, but generally no penalty