Alternative Student Loans
A school-certified private loan requires your school to verify that you are an enrolled student and are not borrowing more money than the total cost of your education, minus any other aid you've received. Many student aid offices offer electronic loan certification.
Am I eligible?
- You must be a U.S. citizen or permanent resident
- You must have good credit (you may need a co-borrower if you do not have established credit or income)
- The student must typically be enrolled at least half-time in a participating school or program
How much can I borrow?
You can borrow up to the cost of attendance, minus any other type of financial aid you've already received.
Where can I spend the money?
Use your certified loan to cover tuition, books, room and board, computer equipment and any other education-related living expenses.
Interest Rates and Fees
Interest rates are variable, but according to FinAid.org, a leading source of financial aid information on the Web, the best private student loans currently have interest rates of LIBOR (London Interbank Offered Rate - the accepted standard for loan rates) plus 1.8 percent or PRIME - 1.00 percent with no fees. Any fees charged are typically based on your credit history. There may also be fees associated with origination (one-time charge based on the loan amount), disbursement or repayment. Always check these terms carefully.
next page
After reading about school-certified loans on the page Alternative Student Loans, read about Direct-to-Consumer Student Loans.