Alternative Loan Programs
Before applying for a private or alternative education loan, you may qualify for grants and/or other assistance under
Title IV of the Higher Education Act. Loans under Title IV include the Federal Stafford and the Federal PLUS loan.
These Title IV loans may have terms and conditions that are more favorable than the terms and conditions of private
education loans. The more favorable terms of Federal loans generally include the interest rate, fees, and repayment
options such as deferments and forbearances. In addition, Federal loans may be eligible for loan repayment, loan
forgiveness, discharges due—for example—to total and permanent disability or to death.
All students are strongly encouraged to complete the
Free Application for Federal Student Aid (FAFSA) each year. By
completing the FAFSA you are applying for federal and state aid including
Pell grants, Stafford Loans, and other federally
funded campus need and/or merit based aid. Parents of dependent students and Graduate students may also apply for
Parent PLUS or Graduate PLUS loans.
Students and their families can borrow additional loan funds to help meet their college costs using Alternative
Loan programs. These loan programs are provided by commercial lenders and are not supported by state or federal
financial aid funds. Given the current state of the economy and tightening of credit criteria, the availability of
alternative loans is declining while interest rates on these loans is rising. Some alternative loans may require
interest payments while the student is enrolled in school.
A private alternative loan is typically issued in the student’s name and most often requires a credit worthy cosigner,
who is a US citizen or permanent resident. Maximum loan amounts, loan terms, borrower qualification, repayment schedules,
and interest rates vary among lenders.
Private Alternative Loan Considerations
- Apply with a credit worthy cosigner - Applying with a cosigner may provide you with an increased chance of approval
and more competitive interest rate.
- Borrow only what you need to meet your educational costs
- Do your research. Ask questions of your lender and find out which loan will benefit you the most.
- Be aware of interest rates, fees, and repayment terms before completing the application and promissory note.
- Monitor you total indebtedness being sure you will be able to repay with interest.
- Cosigners are equally responsible for repayment of the loan and their credit is equally affected.
You have the right to select the alternative lender of your choice. The list of lenders provided are lenders
used by University of Pittsburgh students. Neither the University of Pittsburgh nor the Financial Aid Office intends any
specific endorsement, recommendation, or promotion of these products by including lenders on this list. An alternative loan
is an agreement between the borrower, co-signer (if any) and the lender. The University of Pittsburgh cannot be held liable
if the borrower is dissatisfied with interest rates, other terms and/or service provided by the lender.
Click here to preview a list the alternative lenders who have provided
alternative loans to University of Pittsburgh students during the last two to three years. You should also contact
these lenders directly for further questions.
Students and their families may choose Alternative Loan Lenders other than those listed at the link above. If you
choose such a lender, you should complete an application with the lender. The lender should then forward a certification
request to the Office of Admissions and Financial Aid by mail, fax, or email.
4227 Fifth Ave
Pittsburgh, PA 15260
(412) 624-5400 fax
oafa@pitt.edu
Your choice of a lender other than those listed at the above link will not result in the denial or a delay of processing.
More information and options about private alternative loans can be found at
http://www.finaid.org/loans/privatestudentloans.phtml
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