What is an Alternative Loan?
Alternative student loans are private loans obtained from various financial institutions. The federal government does not guarantee them and interest generally begins to accrue from the date of disbursement. Alternative loans usually require a credit worthy co-signer. The student may borrow up to the cost of education less all other financial aid received.
How Can I apply for an Alternative Loan?
- You may apply from any lender of your choice. Due to the large number of lenders with various terms and rates, students are encouraged to carefully review, compare and contact lenders with any questions.
- After completing your loan application, your lender will review the application and complete a credit check. You will also be required to complete a self-certification form that discloses important information regarding the terms of your private loan.
- The lender will send SUNY New Paltz a request for certification of your eligibility status.
- SUNY New Paltz will certify the loan request from the lender. You will then be able to see the loan as part of your revised aid package on your my.newpaltz account.
- The lender will issue final approval for the loan.
- Upon receipt, the funds will be applied to the student’s account and any remaining credit balance refunded to the student. The entire application process can take approximately 4-6 weeks.