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

Alternative loan lenders

Federal Loans Private Loans
Co-signer Requirement No Yes
Credit Check Requirement Stafford-No
PLUS-Yes (however, debt to income ratio not included)
Yes
Deferment Yes Depends on Loan
Grace Period Stafford- 6 months
PLUS- 6 months
Depends on Loan
Interest Rate Fixed Variable
Fees Stafford-Up to 1.5%
PLUS-Up to 4%
Depends on Loan
Loan Forgiveness/Discharge Yes No
Penalty for Early Repayment No Yes