Alternative Loans

Alternative loans are loans that are applied for and received through private lending institutions which are based on a student’s credit rating. There may be circumstances where Stafford loans, scholarships, and grants will not cover a student’s entire account balance. An alternative loan is a possible solution to paying the difference.

Students are encouraged to apply for Stafford Loans through the Free Application for Federal Student Aid (FAFSA) before using alternative loans. The FAFSA web address is: www.fafsa.ed.gov.

Important facts about alternative loans:

• They are almost always credit based.
• Can require a co-signer.
• The loan amount cannot exceed the Cost-of-Attendance minus existing aid.
• After the application is processed, the VFAO will certify the student's enrollment with the lender.
• The repayment of an alternative loan varies but is usually deferred until graduation or enrollment drops below half-time (six hours for undergraduate and three hours for graduate students).
• Most loan programs require half-time enrollment to apply.

Here is a list of some alternative loan lenders:

www.chasestudentloans.com
www.eduloans.pncbank.com
www.edamerica.net
www.salliemae.com