Financial Aid Alternative Loans
Private alternative loans are non-federal educational loans available from a variety of national lending institutions. Private alternative loans can be borrowed in place of federal loans. However students are encouraged to first complete the Free Application for Federal Student Aid (FAFSA) at www.studentaid.gov and exhaust all eligibility for federal funds before applying for alternative loans.
Private alternative loans require a good credit rating and usually require a credit worthy co-signer. If a student is denied for the Federal Direct GRADUATE PLUS loan due to adverse credit, that student usually will not qualify as a co-signer for a private alternative loan.
The maximum amount that a student can borrow in a private alternative loan is their Cost of Attendance minus any other financial aid awarded.
Private alternative loan processing may take several weeks from the time you apply for the loan until the funds disburse to your Student Account. These requirements will affect the time for lenders to process and disburse private loan funds. If you plan on applying for a private loan, you need to start the application process several weeks before the funds are needed. Registration holds will not be cleared if the loan is not approved for disbursement with the lender. Student Account finance charges will not be waived if the loan disbursement is received after the payment due date required by the Student Accounts Department.
We suggest you research these questions with the lender of your choice when selecting a private loan lender:
- Does the loan require a co-signer? Is there a co-signer release option?
- Are there fees on the loan?
- What is my interest rate?
- When does the loan repayment start? How long do I have to repay?
- Can principal and interest be deferred while the student is in school?
- Can principal and interest be deferred if the student later attends graduate school?
- What repayment benefits are offered on the loan?
Private Education Loans, also known as Alternative Education Loans, are available to students who require additional financial assistance. These loans are offered by financial institutions, such as banks or credit unions, and are available to students with good credit or with a creditworthy cosigner. Many private lenders offer loans with both variable and fixed interest rates. With a variable-rate loan, rates can rise or fall depending on the economy. They often have a lower beginning rate than the fixed-rate loan, and monthly payment amounts change when the interest rate changes. With a fixed-rate loan, the interest rate stays the same for the life of the loan. Fixed-rate loans often have higher rates than the variable-rate loans and have set monthly payment amounts.
When choosing a private loan, students should compare the loan terms offered by several programs in order to choose the best fit. Interest rates, fees, loan repayment schedules, and the financial stability of the lender are primary factors to consider.
For additional information regarding private loans and comparisons, please visit FASTChoice. FASTChoice helps you determine which loan is right for you by providing detailed information for various loans, as well as the terms and benefits offered by different lenders.
Most lenders have restrictions regarding credit approvals. If you need a private/alternative loan because you are enrolled less than half-time status or need to pay off a balance from a prior term, you will need to check the lender's eligibility requirements before applying for the loan.
Click on the link below to view/compare lenders that have provided private educational alternative loans to Pepperdine University, School of Public Policy students in the past three years. We recommend that you review the terms and conditions of several lenders before applying.
Pepperdine School of Public Policy does not have any preferred lender arrangements with any of the lenders listed and cannot recommend a lender to you. You have the right to borrow through the lender of your choice.