Some students may need to consider applying for a private alternative student loan. You need to be enrolled at least halftime before we will review your eligibility for a private alternative loan. When looking for a private loan, be sure to do your homework. Many lenders offer private educational loans with varying terms and interest rates. Be sure to shop around and find the private educational loan that works best for you. Be mindful that lenders will offer you more money than you may need.
Private loans should only be considered when all other resources (such as Stafford or PLUS loans) have been exhausted. Because the Federal Government does not guarantee alternative loans, they must be insured privately. This extra cost is passed on to the borrower in the form of higher fees and interest rates. In addition, the lender will look at your credit history as well as other factors to determine if they will lend to you.
**The Office of Financial Aid cannot recommend a lender for you. If you have any questions about the loan, please contact the lender.
Requirements vary according to the lender. Some common requirements are:
- Undergraduate or graduate student in a degree or certificate program
- Enrolled at least half time
- Creditworthy borrower or borrower with a creditworthy cosigner
- Student may be required to be a U.S. citizen, permanent resident or eligible non-citizen
- You must accept and/or decline all other financial aid that has been offered to you before your private loan can be certified.
- Your private loan funds will not show as anticipated aid. Therefore, the bursar's office may assess late fees if the loan does not disburse before your billing due date.
- Generally the certification process will take 10-14 business days but could be longer during peak times (August through October). This processing time is for IU Southeast only and does not include additional processing time your lender may have before they send funds.
- Can borrow amount up to cost of attendance
- Your certified loan will disburse only after your lender has everything they need from you, e.g., income verification, co-signer addendums, or signed original promissory notes.
You are obligated to repay your private loan regardless of whether you complete your education, are satisfied with your education, or find employment. Generally, private loans go into repayment once you graduate or drop below halftime.
Indiana University Southeast and most of its lenders manage private loan certifications and disbursements through Education Loan Management (ELM) Resources. You can check the status of private loans that are certified through ELM by registering for this service at the ELM Web site.
What to consider before deciding on an alternative loan:
- What is the interest rate - is it fixed or variable?
- How is the interest rate calculated and capitalized?
- What fees are applied?
- Can principal and interest be deferred?
- When does repayment begin?
How to find a lender and apply for a private loan:
- All loans must be certified by our office with the lender.
- Contact your own bank to see if they offer an alternative loan program.
- Search on the internet, or use one of the links provided below.
- You are free to select any lender, including those not presented in INvestEd Marketplace or FASTChoice. We maintain a professional relationship with all lenders. Our office is prohibited from accepting financial or other benefits in exchange for displaying lender and loan options in either INvestEd Marketplace or FASTChoice. The advantages of using one of these options is it streamlines the overall process, including eliminating mailing certification forms and waiting for signatures. If you choose a lender not available on INvestEd Marketplace or FASTChoice, the lender must send a paper certification to our office.
Be a smart consumer!
It is important to keep all borrowing within reasonable bounds - never borrow more than you believe you will be able to repay.
When completing the application, please use the following dates to indicate which academic period you would like to borrow the loan. Using dates other than those listed below may result in processing delays.
- Academic Year 2017-2018: 8/21/2017 – 5/1/2018
- Fall Semester 2017: 8/21/2017 – 12/9/2017
- Spring Semester 2018: 01/8/2018 – 5/1/2018
- Summer Semester 2018: 5/8/2018 – 8/6/2018