Student Financial Services

Alternative/Private Loan Funding

What is an Alternative Loan?

Alternative student loans (also known as PRIVATE LOANS) are educational loans obtained from various financial institutions. The federal government does not guarantee them and interest generally begins to accrue from the date of disbursement. It's important to know that you cannot consolidate federal and private loans together. Alternative loans usually require a co-signer unless the student applicant can prove substantial income and credit-worthiness. The student may borrow up to the cost of education less all other financial aid received.  The student cannot borrow more than the cost of attendance regardless of the amount the lender has approved.

Does New Paltz Recommend lenders?

To ensure the integrity of the student aid process and ethical conduct of employees in regard to student loan practices, SUNY New Paltz aid officers do not recommend lenders. You are free to choose whichever lender you want to do business with. Some students like to go with a bank that they already have a relationship with. Most lenders use an online application process, so you can search for loan products on the web.

How Can I apply for an Alternative Loan?

  1. 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.
  2. After completing your loan application, your lender will review the application and complete a credit check.  You may also be required to complete a self-certification form that discloses important information regarding the terms of your private loan.
  3. The lender will send SUNY New Paltz a request for certification of your eligibility status.
  4. 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. 
  5. The lender will issue final approval for the loan.
  6. 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.


Have a balance to pay?

Google: Alternative Private Student Loan


An Alternative Student Loan can help students who have a past due balance.

This includes:

1. Having an existing balance to pay for an enrollment period within the past 365 days.

2. Are taking one or just a few classes or attending less than half time.

3. Are seeking a professional certification or enrolled in a continuing education program.

4. Are a U.S. citizen enrolled in a foreign institution or study abroad program.

5. Are a non-U.S. citizen student, including Deferred Action for Childhood Arrivals (DACA) students, attending a school located in the U.S. with a credit worthy cosigner (who is a U.S. citizen or U.S. permanent resident).


Need a loan to help pay for college? Compare Federal and Private Student Loans!

Private Loans