An Alternative Loan is a credit-based consumer loan for the sole purpose of covering education costs. These types of loans tend to cost more than the education loans offered by the federal government, but are less expensive than credit card debt. The federal education loans offer fixed interest rates that are lower than the variable rates offered by most alternative/private student loans. Federal education loans also offer better repayment and forgiveness options. Since federal education loans are less expensive and offer better terms than private student loans, you should exhaust your eligibility for federal student loans before resorting to private student loans. Before considering an Alternative Loan, be sure to read Information About Federal Stafford Loans.
To find out more about Alternative (Private) Education Loans, go to http://www.finaid.org/loans/privateloan.phtml. This website provides detailed information about alternative loans and alternative loan lenders.
A private education loan may be right for you if:
- Scholarships, grants & federal student loans do not cover your total education-related costs
- You do not want to tie-up credit cards, home equity, savings and investments, or a 401K plan
- You are not applying for traditional financial aid but still need money to cover your education-related costs
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Loans:
Federal Perkins Loan
Federal Stafford Loans
Graduate PLUS
Parent Loans for Undergraduate Students (PLUS)
Alternative (Private) Education Loans
General Loan Information:
Assumption Program of Loans for Education
Check Your Loan Status
How to Choose a Lender
Interest Rates
Lender List
Loan Default Information
Loan Exit Counseling
Student Loan Facts
Who Is/Was My Loan Provider?
Withdrawal Policy
Debt Management Links:
CSUN Debt Management Information
California Debt Awareness
Credit and Debt Assistance
Credit Card Smarts
Guide to Defaulted Loans
National Student Loan Clearinghouse