What is an alternative Loan?

Alternative Loans are private loans that a student borrows from a bank/lender for education expenses.   Students are the borrowers with alternative loans, although the vast majority of student's require a credit-worthy co-signer.  There are many alternative loan products on the market, each having different variable interest rates and loan terms.

How much can I borrow?

Although these loans are "above and beyond" what is awarded by the University, the school must still certify that t the loan, along with the student's other financial aid, does not exceed the cost of attendance.You can borrow up to your cost of attendance, however your alternative loan, along with any other financial aid you are receiving cannot go above your cost of attendance. Cost of attendance includes tuition, housing, personal expenses, transportation, and books. Not all of these costs will be listed on your bill and can vary for each student but they are used by the Financial Aid Office when determining your total financial aid package. The cost of attendance is usually higher than your direct costs to allow you to borrow funds for additional expenses. Your financial aid cannot exceed your cost of attendance.

How do I apply for an Alternative Loan?

You can apply online with the lender of your choice. Most dependent students need a creditworthy co-signer to be approved for this type of funding. Sometimes the lender will require additional documentation such as income verification information to process your application. Please check with your lender to make sure you have completed the application process correctly and completely. Your loan cannot be processed until this has occurred.

How do I get my money?

If the funds are sent to Walsh (instead of directly to you), they will post to your account soon after the start of the term. Your financial aid, including your private loan, will pay your Walsh charges first. If you have money left over (more than aid charges), you will receive a refund check. The refund process usually begins after the second week of classes and can very depending on when your financial aid file becomes complete.

Should I borrow a PLUS Loan before I would consider an Alternative/Private Loan?

A PLUS Loan is a federal loan available to parents of undergraduates enrolled in a degree-seeking program. The interest rate is a fixed 8.5% which may be better than the rate you would be given on a private loan. If your parent is willing to borrow these funds, this may be the best option in the long run.