Private/Alternative Loans

Students who are not eligible for federal student loans, scholarships, or other aid programs, or those who need additional funding beyond their federal student aid eligibility may choose to apply for a private education loan. Private loans, sometimes referred to as “alternative loans,” are offered by private lenders and may help students cover educational expenses up to the Cost of Attendance, less any other financial aid received.

Private loans are not federal student loans and are not subject to the same oversight, regulations, repayment options, or borrower protections that apply to federal loans. The terms and conditions of loans made under Title IV may be more favorable than those of private education loans. In many cases, it is advisable for students to exhaust their federal eligibility before borrowing from a private lender. Please note that a student’s total financial aid package, including loans, may never exceed the Cost of Attendance (COA).

Comparing Options

The Department of Education provides information to assist students with identifying the differences between federal and private student loans.

Any student who wishes to borrow from a private student loan should complete the federal student aid application process and review their award notice before submitting a private loan application. This will ensure that the borrower is fully aware of their eligibility for federal student loans and is able to make fully informed borrowing decisions.

For students who conclude that private loans are the right option, we recommend reviewing multiple lenders and comparing interest rates, fees, repayment options, borrower benefits, cosigner requirements, and overall loan terms before borrowing. Students may use ACOM’s FastChoice as a resource to review and compare private loan options. Our office will process a private loan application with the lender of your choice; however, we cannot recommend any particular private lender. All borrowing decisions are the responsibility of the student.