Office Hours:
Monday-Tuesday
8:30 a.m. - 4 p.m.
Wednesday
10:00 a.m. - 4 p.m.
Thursday - Friday
8:30 a.m. - 4 p.m.

ALTERNATIVE LOANS

Alternative (non-federal) Loans (USE AS A LAST RESORT) may be borrowed to pay educational costs after all other forms of financial aid have been identified. These alternative (private) loans are not automatically identified on your initial award notification. If an alternative loan is necessary, we highly recommend that the process be started as soon as you know your financial aid award. Bills are due in the beginning of August for the fall semester and at the beginning of December for the spring semester. Although the lending institution you choose is completely up to you, we strongly recommend that you consider the following:

Alternative loans are private loans through a lending institution and not part of federal government programs.
Alternative loans are more expensive than federal government guaranteed loans and should only be used when all other options have been exhausted.
Be sure you have applied for all available scholarships, grants, work study and federal loan programs offered (by completing the FAFSA) before borrowing from an alternative loan program.
Alternative loans are in the student's name and a cosigner is usually required. Once a complete application has been received, the lender will perform a credit check and will let you know within two to three weeks if your application has been approved.
Eligibility for alternative loans is based on the Cost of Attendance (2009-10) minus other financial aid you plan to access. If aid was identified on your award which you do NOT choose to accept (i.e. Federal Parents PLUS Loan or Federal Work-Study), you may access an alternative loan to replace these programs after official notification declining these programs has been received by the Financial Aid Team.

STUDENTS MAY CHOOSE ANY ALTERNATIVE LENDER. PSU is providing a NEW tool (FASTChoice Solutions) if assistance is needed in selecting an alternative (private) lender. This tool is provided by Great Lakes Higher Education Assistance Corporation (GLHEAC), a guarantor and servicer to assist PSU students in selecting a lender. FASTAlt Solutions also provides the ability to compare the benefits and terms of each loan program to assist students in making their best choice.

To select a lender and apply for an alternative loan electronically, CLICK HERE You will be directed to FASTAlt Solutions where you will create an account and be directed to a Loan Options page. In FASTChoice Solutions you will be able to compare different alternative loan programs and connect directly to the lenders website to complete their application process.

Thinking about a Private Loan? Be sure to understand the full impact it will have on your financial aid package and your budget.

SOME IMPORTANT QUESTIONS TO ASK A PRIVATE LENDER:

Is there an origination fee associated with this loan and if so how much is it?
(An origination fee is the amount the lender subtracts from each of your loan disbursements. It is usually calculated based upon a percentage of the amount you borrow)

Is there a repayment fee associated with this loan and if so how much is it?
(A repayment fee is an amount added to your total loan before your repayment period begins)

Borrower Eligibility

Is a co-signer required? If so, under what circumstance?

Would the interest rate and/or fees be reduced if I applied with a co-signer?

Is there an option to release the co-signer at a later date (i.e. after a specific number of on-time payments)?

Interest Rates and Other Fees

What is the initial interest rate?

Is the interest rate fixed or adjustable? If adjustable, how often does the interest rate adjust (some lenders adjust the interest rates each month, some are quarterly, etc.)?

Is there a cap on the interest rate (maximum rate that may be charged)?

What additional fees may be incurred during the life of the loan?

Are any of these fees based on credit rating or existence of a co-signer?

What if any interest rate reductions, or other incentives, may be offered during the life of the loan?

How will the interest on my loan accrue while I am in school? Will it be capitalized? If so, how often?
(Capitalization is when the interest accrued is added to the amount you borrowed. The frequency at which this occurs is very important when determining how much you will repay. Capitalizing interest once prior to repayment is much better financially for you than capitalizing interest on a monthly basis. Either way, we recommend paying the interest as it accrues while you are in school)

What is the interest based upon? Is it a percentage added to LIBOR, T-Bill, or Prime Rate?

Check out this brochure for more information about the cost of student loans!

Loan Application Process

Is the loan application online or is it paper?

How does my co-signer complete their section of the application?

Can I sign the application electronically, or do I need to print, sign and mail the application to the lender?

How will my school be notified I have been approved?

How long does it take for the school to be notified?

Repayment Terms and Conditions

Will my loan be sold? If sold, will I lose my borrower repayment benefits?

How long do I have after I graduate or leave school before I am required to start making monthly payments on this loan?

What is the length of time I will be given to repay this loan?

What is considered an on-time payment? Some lenders consider payments late if received one day past the due date, others may allow up to 15 days before considering payments late. Note: If payments are not timely repayment benefits might be lost.

Give Yourself Credit!

Lenders use credit scores to make fast and objective decisions on which applicants are likely to repay their loans on time. Credit scoring is calculated using many pieces of your past bill payment history (number and types of accounts, late payments, outstanding debt, and the age of your accounts).

The way you have handled credit in the past is often a good indication of how you will manage credit in the future. Therefore, your credit score is like a snapshot of your level of credit risk at a particular point in time; when your credit information changes, so does your credit score.

Give yourself the credit you deserve. Pay your bills on time, pay down any outstanding debt and avoid taking on new debt or applying for too many new credit cards. (Note: http://www.myfico.com/CreditEducation/CreditScores.aspx is a great place to find out more about what your FICO score is. They even give you tips to improve your FICO score, as well as facts and fallacies about your FICO score!)

Important:

Plymouth State University will not certify an Alternative loan until we receive notification that the master promissory note has been signed with the lender.

If PSU receives an Alternative loan certification request and the financial aid process has not been completed, we will hold that certification until the student has been awarded financial aid (unless the student wishes to decline the financial aid process).

Holding certification of an Alternative loan may result in an expired credit check approval. Credit approval generally expires every 90 days. Credit may need to be rechecked by the lender if the Alternative loan has not been certified by PSU within the first 90 days.